Majorwaves Energy Report

Majorwaves Energy Report DECEMBER 2020, Vol 3 No 12

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Majorwaves Energy Report DECEMBER 2020, Vol 3 No 12

CONTENTS

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Dangote Refinery to Employ Over 250,000 Nigerians

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We’re Determined to Pass PIB In Six Months — Gbajabiamila

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Seplat Announces its Q3 Financial Results

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Nigeria Needs 200GW of Electricity to Industrialise – President NGA

Modular Refineries: Elixir or Real Fix

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LADOL’S MD Urges African Private Sector to Embrace UN 17 SDGs

Oil Industry Keeps an Eye on Angola with Top 25 Movers and Shakers to Watch List How PPPs Attracted $8.5b into Nigeria’s Economy in 10 Years – ICRC boss

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New Apapa Terminal to Offload 5,000 Containers, Ease Congestion

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Christmas: Street Waste Company to Feed 1,000 Vulnerable People In Obalende

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Majorwaves Energy Report DECEMBER 2020, Vol 3 No 12

Trailblazers We’ve come to the end of a very interesting year but all the uncertainties with it are being carried into 2021.

According to the Nigerian Extractive Industries Transparency Initiative (NEITI), Nigeria loses an estimated $15 billion yearly in foreign investments due to regulatory uncertainty. There’s some ray of light with promises on the passage of the Petroleum Industry Bill (PIB). At this stage, the entire hydrocarbon industry in Nigeria will breathe a heavy sigh of relief, regardless of the version that gets passed.

At least, speculators and the potential investing publics will be able to make projections and commit their hard earned resources to worthwhile projects.

You’ll find an update on this all-important bill in this edition.

In spite of the uncertainties in the industry, some representatives of government have been able to bring their rare experiences in private establishments to bear. We’ve seen exploits from the revolutionary leadership of Engr Simbi Wabote and his team at the NCDMB. The Board stood out and forged a PPP relationship with Waltersmith. The dynamics of that partnership, the buzz it has created and the prospects have influenced our choice of the cover story.

Also, for the first time in 43 years, we are seeing NNPC publish audited reports. The GMD, Mr Mele Kyari is defying odds by breaking the tradition at the state-owned corporation. The NNPC has gone ahead to cut its losses by 97 per cent in just one year! In fact, the national oil company has promised to declare “dividends” to Nigerians at the end of this year.

These individuals who have displayed a high level of integrity are en route to establishing impeccable institutions and processes. Nigerians cannot ask for a better legacy than that.

We bring you reports on the activities of these organisations and a lot more from across the wide stretch of Africa’s hydrocarbon industry, its infrastructure, social investment and sustainability drive.

While you celebrate the Christmas, remember to stay safe as the second wave of Covid-19 ravages on.

Jerome Onoja

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Editor’s Note Publisher Joshua Bretz Managing Editor Jerome Onoja Editor Margaret Nongo-Okojokwu Business Development Stanley Etim Taiwo Olamilekan Amicable Aluu Production Solomon Obande Toma Stephen Research Analyst Simon Olanipekun Correspondents: Lagos Ikenna Omeje Abisoye Vincent Emeka Enunwah Daniel Terungwa Chukwunonso Mordi Port Harcourt Arit Dan Stella Odogu US Omaya Joko UK Kunle Kazeem

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Majorwaves Energy Report is published by Majorwaves Communications, 25B, Adebayo Doherty Street, Lekki Phase 1. Lagos Phone: +2349035477966 Email: info@majorwavesenergyreport.com www.majorwavesenergyreport.com

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INDUSTRY NEWS

Dangote Refinery to Employ Over 250,000 Nigerians

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he management of Dangote Refinery and Petrochemicals has disclosed that the 650,000 barrels per day project will create jobs for not less than 250,000 Nigerians when completed and fully operational next year.

Industries Limited is the highest employer of labour outside the federal government.

Group Executive Director, Strategy and Capital Projects, Dangote Industries Limited, Mr. Devakumar Edwin, told reporters at the site that the company’s Refinery has potential to turn around Nigeria’s economy with the employment of thousands of Nigerians for direct and indirect jobs.

He said that Dangote Fertilizer Limited has a well-equipped fertiliser soil testing laboratory to ensure efficiency of the product for farmers.

He explained: “The laboratory will enable us to analyse and identify a particular soil deficiency. Applying the right fertiliser to soil will enable it to yield maximum results. The goal of our soil testing is to provide an accurate assessment of the soil’s fertility to make fertiliser recommendations.

He said the huge unemployment rate of Nigerian youths and the need to make the country self-reliant in fuel consumption and attract much needed foreign exchange through export of the products were reasons that motivated the President of Dangote Group, Aliko Dangote to venture into manufacturing.

The Dangote Group boss said he was very optimistic that the refinery will be a game changer for Nigeria and the rest of Africa.

According to him , Dangote Industries Limited has succeeded in substantially reducing the high rate of unemployment in the country, with the conglomerate already recruiting youths for its various agricultural schemes and also into its other subsidiaries. Dangote

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In the same vein, Edwin also assured that, other things being equal, Dangote Fertilizer plant’s products will hit the market this month.

“A proper soil test will help ensure the application of enough fertiliser to meet the requirements of the crop while taking advantage of the nutrients already present in the soil.”

Edwin maintained that Dangote Fertilizer would make Nigeria become self-sufficient in fertilizer production and have the capacity to export the products to other African countries.

“Right now, farmers are forced to utilize whatever fertilizer that is available as they have no choice, but we need to know that the fertiliser that will work in one state may not

be suitable in another state, as they may not have the same soil type and composition. The same fertilizer you use for sorghum may not be the fertiliser you will use for sugar cane,” he added.

Speaking on Dangote Refinery’s employment generation capacity, Director- General at Nigeria Employers’ Consultative Association (NECA), Olawale Timothy lauded the promotion of the refinery saying the potential to create 250,000 direct and indirect jobs on completion will greatly reduce crime and poverty in Nigeria.

Olawale stated that the kind gesture

by Dangote Refinery will greatly reduce the menace of insecurity, which he noted, has become a major issue in the country.

“We have always said that gainful employment is a veritable way of reducing crime. When you engage the youthful population in a meaningful way, they will not take to crime.

“It is worthy to note that the generation of 250,000 workers by the refinery at completion will reduce youth unemployment. We also have the advantage of reducing poverty level in the country. This is because gainful employment will increase the purchasing power of the people. It will improve their standard of living.”

INDUSTRY NEWS

African Energy Chamber Forecasts Increased Gas Monetisation in Latest 2021 Outlook

By Mordi Chukwunonso Esther

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n its latest Africa Energy Outlook 2021 released recently, the Afric an En erg y Chamb er forecasts increased gas monetization across the continent on the back of decarbonisation and industrialisation drive.

on the back of weak COVID-19 induced demand and continued high supply of LNG before prices tighten significantly as LNG demand growth will outpace liquefaction capacity due to more delays in project sanctioning.

In an article distributed by APO for the African Energy Chamber, the chamber has notably found that while not insulated to COVID-19, gas markets have been less exposed than that of oil to the shocks of 2020, notably because the transportation industry has been the most affected by the COVID-19 pandemic and is more oil-demanding than gas. The global gas market was nevertheless already facing a glut of LNG before COVID-19, resulting in even more depressed prices as the pandemic’s impact on demand started to manifest in the spring of 2020. As a result, key reference prices in Europe, North America and Asia all have experienced negative pressure since the start of 2020

The forecast notably points to a tight LNG balance between 2023 and 2025, and along with it, a price spike. Following this period, there is a downside risk in prices for 2026 and 2027 driven by the potential of seeing a new wave of sanctioning activity during 2021 and 2022.

Such future projects are expected to include ExxonMobil and Eni’s 15.2 mtpa Rovuma LNG terminal in Mozambique and expansions of BP and Kosmos Energy’s Greater Tortue Ahmeyim (GTA) FLNG project in Mauritania and Senegal.

The African Energy Chamber encourages collaboration between businesses and government and takes a leadership role in shaping policies, sharing best practices and using resources to create value.

Looking forward, the African Energy Chamber’s expectations for the global gas market fundamentals are to remain loose through 2021

Given the gas glut on global markets with corresponding depressed prices, the Chamber notes that there may now be an opportunity to stimulate more domestic gas consumption in Africa. Expanding infrastructure to displace diesel, increased use of gas in the power mix and gas for industrial purposes are all initiatives that would benefit from the current low cost of gas.

Thankfully, African officials and regulators have increasingly seized the importance of natural gas and are pushing for its adoption across industries, especially in the key

hydrocarbons market in West, Central and Southern Africa. Nigeria for instance has declared 2020 the Year of Gas and adopted a new gas transportation network code this year, and Senegal embarked this year on a gas pipeline network project to construct a 155km national gas grid.

Monetizing gas makes even more sense in Africa given the continent’s very high flaring intensities. While Africa benefits from conventional and easy to extract hydrocarbons, the inability to prevent gas flaring nevertheless catapults the continent to the overall least carbon efficient continent at about 31 kilogram CO2 emitted per barrel of oil equivalent produced according to the Outlook.

While 2018 is currently the last year with high quality data, projections towards 2025 nevertheless points to Africa overall not improving its position with emissions remaining above 30 kilograms CO2 per barrel of oil equivalent. Only stronger monetization of gas at home could justify using Africa’s gas reserves for industrial and power generation purposes instead of burning and wasting them. In doing so, Africa would not only reduce its carbon intensity, but also become more attractive to global investors seeking to allocate capital to the least carbon intensive projects possible.

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INDUSTRY NEWS

We’re Determined to Pass PIB In Six Months — Gbajabiamila ...says House ready to carry stakeholders along

By Margaret Nongo-Okojokwu that we should go back to the old arrangement that we had.

“I need to ask the question that where were you when they were making this law?

“Your inputs should have been there.

“It’s never too late for you to have your inputs.

“I’m sure the committee will do justice to the other issues you raised.”

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he Speaker of the House of Representatives, Rep. Femi Gbajabiamila, has assured that the Green Chamber was determined to pass the Petroleum Industry Bill within the next six months.

Speaking when he played host to a delegation of the Oil Producers Trade Section under the Lagos State Chamber of Commerce and Industry, Gbajabiamila said the House would ensure that it passes a PIB that would be satisfactory to all.

He said: “On the PIB, there are two things that the House would want to do.

“First, the House is determined to pass the bill within the next six months or probably less, because the clock has already started running from the time it was presented.

“Two, the House is determined to pass a PIB that is satisfactory to all.

“I know it’s difficult to satisfy everybody, but we will try our best to satisfy everybody.”

Gbajabiamila also said the House

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would ensure that it carried all stakeholders along in working on the draft legislation until its passage.

The Speaker urged members of the OPTS, led by their Chairman, Mike Sangster, to avail themselves the opportunity they have at hand to reach out to the House Adhoc Committee on PIB to make their inputs.

He expressed concerns over the submission by Sangster that the PIB in its present form, would not make the Nigerian oil and gas industry competitive globally.

He said: “The PIB has been long coming. Because of the various interests, it is difficult to pass a bill that addresses the interests of everyone. But the PIB luckily will involve local content”. “I’m very concerned about what you said that the PIB as it is, doesn’t allow Nigeria to compete favourably in the global market.

“We’re not competitive, yet there’s the presence of oil majors here.

“We need to look at it, but I think it will be difficult to tell members

Earlier, Sangster raised concerns about the present form of the PIB, which he said if passed the way it is, it would negatively affect Nigeria’s competitiveness in the global market.

He noted that in the past years, the African continent attracted about $70 billion of investment in the oil and gas industry but that only about $3 billion came to Nigeria despite being a major player continentally.

When the Speaker sought to know from Sangster if the PIB had any positives, the OPTS chairman responded in the affirmative, noting that the PIB represented the muchneeded reforms in the sector.

He noted, however, that in its present form, the Bill “doesn’t provide the environment for future investments”.

He raised other issues to include the preservation of the oil and gas business in the country, royalties, tax, how to handle NNPC’s outstanding liabilities, segregation of the upstream and downstream, complexities in the implementation of the bill, among others.

Noting that the petroleum industry had the capacity to create thousands of jobs in the next 10 years, Sangster said: “We would encourage the House to reach out to other sources to have a better analysis of the PIB.”

INDUSTRY NEWS

Ministry of Mines Debunks Claims Over Alleged Sale of Gold by Gov Mattawale to CBN Daniel Terungwa

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he Ministry of Mines and Steel Development, Arc. Olamilekan Adegbiti, has debunked claims over the alleged sale of gold by the Governor of Zamfara State, Bello Matawalle, to the Central Bank of Nigeria, CBN. This was contained in a statement signed by the Head of Press and Public Relations, Ministry of Mines and Steel Development, Etore Thomas, with the subject, ‘Zamfara Gold: Putting the Facts Right’.

According to the statement, people are seemingly portraying that some states in the country have the right to aggregate mineral resources within their domain for their use, which is not true as all mineral resources remain on the Exclusive Legislative list as enshrined in the 1999 Constitution (as amended).

The statement also pointed that for the benefit of doubt, Section 44(3) states that: “the entire property in and control of all minerals, mineral oils and natural gas in, under or upon any land in Nigeria or in, under or upon the territorial waters and the Exclusive Economic Zone of Nigeria, shall vest in the Government of the Federation and shall be managed in such manner as may be prescribed by the National Assembly.” Likewise the Mineral Act of 2007 is very clear on the issue of mineral ownership and exploitation.

In line with this, the statement notes that the Ministry of Mines and Steel Development is saddled with the responsibility for identifying the nation’s solid minerals, advising the government on the formulation and

execution of laws and regulations guiding the various stages of prospecting, quarrying, and mining, and handling sale and consumption of solid minerals in the country, through the issuance of permits, licenses, leases and collection of rents, fees, and royalties.

The statement reads in part, “The attention of the Ministry of Mines and Steel Development has been drawn to media reports on reactions of individuals and groups to the purported news report about Zamfara State Governor buying gold from artisanal miners in the state and selling same to the Central Bank of Nigeria (CBN). Ordinarily, the Ministry would have been silent but for the negative impression those views are portraying; seemingly that states in some parts of the country have the right to aggregate minerals resources within their domain to their use.

“On Zamfara State gold; Zamfara State has security challenges and the State government discovered that bandits were exploiting the ignorance of the artisanal miners, buy off their gold at very cheap price, take the gold across the border and sell at market price and exchange for ammunitions and guns, which was fueling banditry.

“Though states through their licensed corporate bodies can buy and sell gold to any interested persons or company, it is worthy of note that CBN did not and will not buy gold from Zamfara Government. “The gold displayed by the Zamfara State government is called dore bars (semiprocessed gold). CBN buys gold that

is processed to 99.99% purity which is LBMA standard, tradable all over the world.

“The Federal Government encourages state governments to be part of the exploitation of minerals in the country by incorporating a limited liability company with which to approach the Ministry for a license for Mining or Buying Centres.

“Such corporate body/company must go through normal processes for approval and issuance of license.

This license allows such company to exploit minerals in any given location which is called Cadastre Unit.” The statement also explained that “As part of strategies to implement policies/ programmes in the Mining Sector to broaden revenue generation and employment opportunities in line with the economic diversification agenda of this administration, the Presidential Artisanal Gold Mining Development Initiative (PAGMI) is being implemented. The components of the initiative included but not limited to Formalization of the artisanal miners into cooperatives This is to integrate their activities into the economic and institutional framework that would eliminate illegality; Registration of Buying Centres and Aggregators, to provide market access for artisanal miners, etc. “Like in the oil and gas sector, revenues generated from mineral resources are paid into the federation account, and shared among the states during the monthly meeting of Federation Allocation Account Committee (FA AC).

13% derivation is paid on mineral resources exploitation from minerals producing states as done in the oil and gas sector.”

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INDUSTRY NEWS

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Aiteo’s Owner Makes $1bn Available for Development of Platinum Mine in Zimbabwe

R AVUR A Holdings Ltd., owned by Nigerian billionaire, Benedict Peters, has made US$1 billion available for the development of a platinum mine in Zimbabwe, its country manager has said.

Chronicle reports that the 3 000-hectare (7,413-acre) concession where it plans to dig the mine is in Selous, 80 kilometers (50 miles) south of Zimbabwe’s capital Harare and close to existing platinum mines.

“From where we are now, we will go to resource definition, after that we will go to resource modeling, after mine development and then mine construction,” Lionel Mhlanga, Bravura’s manager in the southern African country, said in a recent interview at the mine.

“Those are all things that should happen in the next 18 months.”

Bravura is one of a number of littleknown companies that have secured platinum concessions in Zimbabwe as the Government seeks to kick start its stagnant economy. Still, established platinum miners have not announced plans to expand their operations.

While Zimbabwe has the world’s third-largest platinum group metal reserves, investors have been deterred

by frequent changes to mining laws and currency policies. In addition to Bravura, Russian and Cypriot companies have announced plans to invest in Zimbabwean platinum mines.

Peters owns Aiteo Eastern E & P Company Ltd., Nigeria’s biggest domestic oil producer, but has little experience in mining. Still, the group also intends to explore mining lithium, rare earth

minerals and tin in Zimbabwe, Mhlanga said. It is also seeking to mine cobalt in the Democratic Republic of Congo, copper in Zambia, gold in Ghana and iron ore in Guinea, he said. Namibia and Botswana could also be options for the company, he said.

Two Non-Executive Directors to Retire From Seplat

By Ikenna Omeje

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igeria independent, Seplat Petroleum Development Company, has announced that two of its Non-Executive Directors will be retiring from the company.

The two Non-Executive Directors whose retirement will take effect from January 31, 2021 are: a Senior Independent Non-Executive Director, Michael Alexander and an Independent Non-Executive Director, Ifueko M. Omoigu Okaru.

The company’s announcement, which is in accordance with Rule 4 of the Nigerian Stock Exchange Amended Listing Rules and Rule 9.6.11 of the UK Listing Rules, stated that Alexander was appointed to the Board in June 2013 while Okauru was appointed in March 2013.

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INDUSTRY NEWS “For the past seven years, both Directors served the Board meritoriously, deploying th eir m ulti-f a cet te d experiences towards the growth of the Organization. Seplat remains grateful for their immense contributions to the Board and the Company.

“Consequently, the Board of Directors is pleased to announce that Mr. Basil Omiyi, Independent Non-Executive Director will become the Senior Independent Non-Executive Director from 1st February 2021. Mr. Omiyi joined the Seplat Board in 2013 after

a 40-year career at Royal Dutch Shell, during which time he occupied a number of senior roles in Nigeria and Europe, including Managing Director, Shell Petroleum Development Company of Nigeria Ltd and Country Chairman of Shell Companies in Nigeria,” Seplat said.

Administrative Charge: LUPAN Petitions FG Over PPPRA’s Imposition of N1.23k on Base Oil

By Ikenna Omeje

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he Lubricants Producers Association of Nigeria, LUPAN, has sent a petition to the Federal Government over the imposition of N1.23 kobo administrative charge on base oil by the Petroleum Products Pricing Regulatory Agency (PPPRA).

According to Vanguard, in the petition titled,” Appeal for the Cessation of Administrative Charge of N1.23K on Base Oil by Petroleum Products Pricing Regulatory Agency, PPPRA”, which was addressed to Vice President Yemi Osinbajo, Executive Secretary, LUPAN, Emeka Obidike, stated: “We once again, are constrained to appeal, with the utmost sense of urgency and deference to your distinguished self and office, for your intervention in facilitating the cessation of the demand

for Administrative Charge of N1. 23 Kobo per litre of base oil imported, by the Petroleum Products Pricing Regulatory Agency [PPPRA], and the arbitrary licensing of base oil by unauthorised agencies.

“The Association has been besieged by a series of complaints from its members of being tasked with the payment of levies, charges, dues, or the demand for certification or licensing, all on a single product- Base Oil, by various, and in some cases unauthorised Agencies under spurious administrative jurisdictions, designations and initiatives, on pain of having their consignments detained, premises sealed or confiscated and business commitments compromised, despite being shown a genuine DPR license.

“The Agency, sometime in the year 2017, insisted on demanding ‘Administrative Charges’ of 10 Kobo per litre of base oil imported despite compelling arguments by the Association, that their duties as stated in earlier correspondence, were a blatant duplication of the powers and functions of the Department of Petroleum Resources, the primary regulators of the petroleum sector and its sub-sector; that base oil, unlike other petroleum products attract a duty of five per cent and are not subject to pricing regulation, as there is no benchmark price, the same being determined by market forces, fluctuations in prices and exchange rates, grades, and country of purchase; that these charges will lead to an increase in the market price of locally blended lubricants, creating favourable market conditions for their imported finished counterparts.”

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INDUSTRY NEWS It bemoaned that: “Notwithstanding the above, consignments were held back and the business of operators was hindered as they were compelled to make said payment to avoid incurring needless expenses by way of demurrage; a further appeal was made for easing the process of registration, pending the receipt of a response from the Presidential committee On the Ease of Doing Business and the Senate, which met with little response that proved ineffectual in alleviating the asphyxiating protocols and bottlenecks attending such a registration process.

“Operators have barely been able to keep up with the payment and processing of said cost, when to our utmost shock and consternation, a subsequent demand letter was issued reflecting the reviewed price, in the sum of N1.

23Kobo per litre of base oil imported.

That no formal communication was sent on the increment, rather operators were informed that the new rate will be communicated on the application for the processing of Quantity Notification.”

LUPAN noted: “By the Petroleum Act, the Department of Petroleum Resources is the primary regulator of the petroleum sector, overseeing activities that relate to production, importation, and exportation of petroleum products and indeed all affairs relating to the oil and gas industry (upstream, midstream, and downstream) and that the PPPRA’s

continued refusal to acknowledge this fact could be construed as a blatant disregard, duplications and encroachment on the authority and jurisdiction of the DPR.

to furnish documents and certifications, most of which are not applicable and in most cases out-rightly alien to the business of Base Oil importation on pain of having their vessel unduly delayed.

“Base oil is a raw material that undergoes further value addition, unlike other white products; 100 per cent importdependent, likewise the additives applied, which risk is solely borne by the importer; attracts a duty of 5 per cent, and is not subject to regulation as its pricing is subject to market forces. There is also a patent lack of government intervention [Subsidy] and unaccommodating policies.

“That the general attitude of government agencies towards indigenous businesses are patently hostile, undermine, and is against the spirit and grain of the Government’s policy on the Ease of Doing Business, as they are swift to shut down and mete out stringent penalties at the slightest hint of non-conformity or administrative oversight rather than assist same to regularize.

“ T h at t h e a dminis t rati ve a n d bureaucratic bottlenecks through, which importers of base oils/manufacturers of lubricants are made to manoeuvre as well as the series of certifications, authorizations, and clearances with their attendant levies and charges are potently detrimental to the business as they are in most cases time consuming, increase the expenses and other ancillary costs connected to receiving the product and significantly inflates the market cost of indigenously produced lubricants making it less attractive than it imported substandard counterpart.

“That the PPPRA, on the heels of DPR’s activities, arrive with modus operandi similar albeit more complicated to that of the DPR’s; operators are compelled

“That the PPPRA, in demanding said charges is acting ultra vires its powers as a regulatory agency and has, to all intent and purpose, have unilaterality conferred upon themselves the functions of a revenue collection agency, charging N1. 23kobo on all petroleum product used in the country, to wit, PMS, AGO, DPK, Base Oil, Bitumen, LPG, etc., at the expense of the sector.”

It added that, “The Government should come to the aid of legitimate businesses, by winding-up the PPPRA. The Government should also avail the sector its full support by way of viable accommodating industry-friendly policies, incentives, palliative, and intervention funds and in general foster encouraging fiscal conditions favourable the sector’s growth.”

Chevron Nigeria Appoints New Chairman

By Ikenna Omeje

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hevron Nigeria Limited has appointed Richard Kennedy as the new Chairman and Managing Director of the company, with effect from November 1, 2020.

Richard Kennedy Replaces Jeff Ewing as Chevron Nigeria’s Chairman and Managing Director

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According to a recent statement signed by its General Manager, Policy, Government and Public Affairs, Esimaje Brikinn, he replaced the former Chairman and Managing Director, Jeffrey Ewing, who recently assumed a new role in Chevron’s Middle East, Africa and South America Region. Until his appointment, the statement said that Kennedy was the Director, Deepwater and Production Sharing Contracts, in

charge of the company’s deepwater portfolio and assets. Reeling out the profile of Kennedy, the statement said he graduated with a bachelor’s degree in Petroleum Engineering from Texas A&M University in 1984 and joined Chevron in the same year as a production/reservoir engineer.

“Since then, he has held numerous technical and leadership positions of increasing responsibility within Chevron’s Upstream, Midstream and Technical Center segments. He has lived and worked in Canada, Indonesia, The Partitioned Zone, Nigeria and the United States in the course of his Chevron career,” the statement added.

INDUSTRY NEWS

Seplat Announces its Q3 Financial Results ...Pays $0.05 dividend to shareholders amid prevailing global challenges

By Ikenna Omeje

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eplat Petroleum Development Company Plc , a leading Nigerian independent energ y company listed on both the Nigerian Stock Exchange 9NSE) and the London Stock Exchange (LSE), has announced its unaudited results for the nine months ended 30 September 2020, recording increased operational efficiencies and further reduction in costs.

According to a release by the company, it said it has continued its expansion into midstream gas processing to reduce carbon emissions by displacing inefficient and expensive diesel generated electricity, and this is aimed at ensuring that Seplat remained at the forefront of Nigeria’s exciting energy transition and provide sustainable energy for a young and rapidly growing population.

The release noted that despite the restraints of the COVID-19 pandemic and the recent unrest in Nigeria, Seplat announced a $0.05 dividend payout to shareholders for the period whilst remaining confident that its cost-cutting initiatives and prudent management of cash would enable further reductions in debt, and support dividend payments and investment for growth.

Commenting on the results, which were released to the NSE and LSE on Friday, October 30, the

release quoted the Chief Executive Officer of the Company, Roger Brown as saying: “Seplat’s thirdquarter performance has again demonstrated the resilience of our business in challenging times and in addition to voluntarily reducing our debt leverage by US$100 million, we are maintaining our commitment to shareholders by declaring an interim dividend of US$0.05 per share, as we have in previous years.

The business continues to operate effectively despite the restraints of the COVID-19 pandemic and the recent unrest in Nigeria.

“We continue to hedge our oil business against further price volatility and are pursuing further cost-cutting initiatives to ensure that we will remain profitable even at lower prices experienced earlier in the year.

“We have strengthened our oversight with the appointment of two independent directors, Arunma Oteh and Xavier Rolet, who bring considerable local and international business and governance expertise to the Board.

“I have taken over the leadership of Seplat at a challenging time for our industry, but I am confident that our actions to increase operational efficiencies, further reduce costs and continue our expansion into midstream gas processing to reduce carbon emissions by displacing inefficient and expensive diesel

generated electricity, will ensure that Seplat remains at the forefront of Nigeria’s exciting energ y transition and provide sustainable energy for a young and rapidly growing population.”

On its outlook for 2020, the company said: “Following our performance over the first nine months of the year we are narrowing guidance to 48,000-52,000 boepd for the full year. We continue to hedge against oil price volatility and expect a higher proportion of revenues to come from long-term gas contracts at stable prices. We also continue to focus on cost savings to maintain profitability at the lower oil prices we have realised so far this year.

“We have significant cash resources available and will continue to manage our finances prudently in 2020, expecting now to invest US$120 million of capital expenditure across the full year (of which US$109 million has already been invested).

We remain confident that our costcutting initiatives and prudent management of cash will enable further reductions in debt, whilst supporting dividend payments and investment for growth.

“The timely completion of the ANOH project in late 2021 remains a major priority and we expect that the debt financing will achieve financial close in the coming weeks.”

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INDUSTRY NEWS

Shell to Focus on Upstream Operations in Nigeria, Eight Others

By Ikenna Omeje more than 80 percent of upstream cash flow from operations; and enhanced value delivery through trading and optimisation.

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hell to focus its upstream operations on Nigeria, Brazil, Brunei, Gulf of Mexico (US/ Mexico GoM), Kazakhstan, Malaysia, Oman, Permian and UK North Sea, which account for more than 80 percent of its upstream cash flow from operations.

The company, which disclosed this in its Q3 results and strategic plan released recently, noted that it “will reshape its portfolio of assets and products to meet the cleaner energy needs of its customers in the coming decades.”

The key elements of Shell’s strategic direction include: Ambition to be a net-zero emissions energy business by 2050 or sooner, in step with society and its customers; grow its leading marketing business, further develop the integrated power business and commercialise hydrogen and biofuels to support customers’ efforts to achieve netzero emissions; transform the refining portfolio from the current fourteen sites into six high-value energy and chemicals parks, integrated with Chemicals. Growth in Chemicals will pivot to more performance chemicals and recycled feedstocks; extend leadership in liquefied natural gas (LNG) to enable decarbonisation of key markets and sectors; focus on value over volume by simplifying upstream to nine significant core positions, generating

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In the results, the company “announced a cash allocation framework that will enable it to reduce debt, increase distributions to shareholders, and allow for disciplined growth as it reshapes its business for the future of energ y. Ongoing work to reshape Shell’s portfolio is expected to deliver continued cash generation to grow its low-carbon businesses as well as to increase shareholder distributions, making a compelling investment case.”

It further stated, “In confirming its progressive dividend policy, Shell announces a dividend per share growth by around 4 percent to 16.65 US cents for the third quarter 2020 and annually thereafter, subject to Board approval.

“The cash allocation framework includes a target to reduce net debt to $65 billion (from $73.5 billion as of September 30, 2020) – and, on achieving this milestone, a target to distribute a total of 2030% of cash flow from operations to shareh older s . In creas e d shareholder distributions will be achieved through a combination of Shell’s progressive dividend and share buybacks. Remaining cash will be allocated to disciplined and measured capex growth and further debt reduction, targeting AA credit metrics through the cycle.

“Shell’s decisive steps this year have significantly strengthened its financial resilience, allowing the acceleration of strategic plans and providing clarity on cash priorities.

These actions support Shell’s ambition to become a net-zero energy emissions business by 2050

or sooner, in step with society and its customers.”

Commenting on the results, the Royal Dutch Shell Chief Executive Officer, Ben van Beurden, said: “Our sector-leading cash flows will enable us to grow our businesses of the future while increasing shareholder distributions, making us a compelling investment case.”

“We must continue to strengthen the financial resilience of our portfolio as we make the transition to become a net-zero emissions energy business. Our decisive actions taken earlier in the year have solidified our operational and cash delivery.

The strength of our performance gives us the confidence to lay out our strategic direction, resume dividend growth and to provide clarity on the cash allocation framework, with clear parameters to increase shareholder distributions.”

Chair of the Board of Royal Dutch Shell, Chad Holliday commented: “The Board has reviewed Shell’s recent performance and its plans to grow its businesses of the future, and we are confident that Shell can sustainably grow its shareholder distributions as well as invest for growth.

“As a result, the Board has decided to increase the dividend per share to 16.65 US cents for the third quarter 2020. The Board has additionally approved a cash allocation framework for Shell which, on reducing its net debt to $65 billion, will target total shareholder distributions of 20-30% of cash flow from operations.”

The company added: “Shell will continue with its strong capital discipline, including annual Cash capex of between $19 and $22 billion in the near term and a focus on reducing net debt. Shell will continue its relentless high grading of the portfolio with expected divestment proceeds of $4 billion a year on average.”

INDUSTRY NEWS

Nigeria’s 2020 Marginal Oilfield Bid Round is Still Ongoing – DPR

By Ikenna Omeje

T

he Department of Petroleum Resources (DPR) has said that the 2020 bid round process for its 57 marginal oilfields in Nigeria is still ongoing.

The Head, Public Affairs, DPR, Paul Osu stated this while speaking with the News Agency of Nigeria (NAN) in Lagos.

He said: “The 2020 marginal oilfield bid round process is still ongoing in line with our published timelines on DPR website and bid portal.

“Over 600 companies have applied to be prequalified for the bid rounds which began on June 1. However, the DPR had put measures in place to ensure that the awardees would be credible investors with technical and financial capability.

“The objective of the 2020 marginal field bid round was to deepen the participation of indigenous companies in the upstream segment of the industry and provide

opportunities for technical and financial partnerships for investors.”

According to the DPR spokesman, the last time the country conducted marginal field bid rounds was in 2003 “with 16 of the fields now contributing two per cent to the national oil and gas reserves while bringing development to their host communities in the Niger Delta.” The bid which is open only to Nigerian owned companies, was heavily subscribed, making it the largest number of bid applications in any hydrocarbon licencing sale in Africa in about 10 years It kicked off in June and attracted non-refundable chargeable fees as follows: Application fee of N 2 Million per field; bid processing fee of N3Million per field; data prying fee of $15,000.00 per field; data leasing fee of $25,000.00 per field; competent persons report of $50,000.00 (Fifty Thousand US Dollars); and fields specific report of $25,000.00.

bidding process was concluded on September 15, 2020 and the DPR is now awaiting the approval of President Muhammadu Buhari, who doubles as the Minister of Petroleum, to announce the results of the marginal fields bid round.

DPR concluded the analysis of the bids some weeks ago and has since sent the results to the Minister of State for Petroleum Resources, Timipre Sylva, who is to deliver it to President Buhari.

According to the guidelines published by the DPR, a marginal field is defined as a field that has been discovered and left unattended for a period of not less than 10 years from the date of first discovery or such field as the President may from time to time, identify as a marginal field.

There are strong indications that the

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INDUSTRY EVENT

NLNG to Increase Allocation of LPG Supply to Nigerian Market From 350,000MT to 450,000MT by 2021 -MD

Nigeria Needs 200GW of Electricity to Industrialise – President NGA

By Ikenna Omeje

T

he Nigeria Liquefied Natural Gas (NLNG) Limited has said it will increase its allocation of Liquefied Petroleum Gas (LPG) to the domestic market from 350, 000MT to 450, 000MT by 2021.

According to him, the desire of the NLNG to deepen LPG penetration in Nigeria is aimed at creating a healthy life for Nigerians by giving them access to a clean source of energy for cooking.

The target, NLNG said, was aimed at supporting the Federal Government’s plan to deepen LPG (cooking gas) penetration in Nigeria.

“In 2007, the total consumption of LPG in Nigeria was about 50, 000MT. Today, it is about one million metric tonnes and NLNG’s contribution is 350, 000MT.

According to the News Agency of Nigeria (NAN), the Managing Director (NLNG) Tony Attah, made the announcement recently during a webinar organised by the Oil and Gas Group of the Nigerian-British Chamber of Commerce (NBCC), with the theme: “Oil and Gas Downstream and Midstream Sectors: The Way Forward.”

Attah said with Nigeria being a gas country with a proven reserve of 203TCF, it was time to use the product to drive the nation’s human capacity development and economic growth.

He said the declaration of the year 2020 as the Year of Gas by the Federal Government was not sufficient, stressing that a decade should be dedicated to the utilisation of gas to transform the country.

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or Nigeria to achieve industrialization, the country needs up to 200 gigawatts of electricity generation going by the United Nations standard, the President of the Nigerian Gas Association (NGA), Audrey JoeEzigbo has said.

”We have approached our board to get a mandate to increase NLNG’s contribution to 450, 000MT from next year. That is a very positive contribution from NLNG,” Attah said.

Joe-Ezigbo who also said that the country has the capacity to achieve the feat because of the enormous availability of gas resources in the country, stated this at the Oil Trading and Logistics (OTL) Africa Downstream Expo 2020, which was recently held virtually.

He noted that apart from the domestic usage, about 60 per cent of gas was being supplied to power generation plants across the country for electricity purposes.

She said:”As many of us may know, we have over 203 trillion reserves of proven gas and another 600 trillion of unproven reserves, but we are not seeing the impact yet.

Attah said this would help create jobs for Nigerians and help to reposition the nation’s economy following the challenges caused by the COVID-19 pandemic.

“We can leverage on gas for economic diversification and build resilience in the economy. Most of the economies that use more gas were a bit more immune to the twin shocks of the pandemic and oil price crash that have happened in the last one year.

He said the world was moving toward cleaner energy sources, adding that gas would afford Nigeria the opportunity to become a key player in the energy transition mix.

INDUSTRY EVENT

Total and ADNOC Sign Strategic Framework Agreement on CO2 Emissions Reduction and CCUS

“From the power point of view, we are a nation of 200 million power and at best we are producing just 5 gigawatts of power whereas by the UN standard , we should be producing 200 gigawatts because the standard is one gigawatt per one million people.”

According to her, “There are also huge multipliers because you can leverage gas in industry, homes and power sector and then it can create revenues.

“But at the same time we are creating employment which is a huge imperative for our nation. We are constrained by infrastructure.

Infrastructure remains a huge conversation as well as the regulatory and legislative framework and general business environment.

“Nigerians have come to realise that we have the resource, we have the market potential and we have the interest generally speaking. We need to find a way to bring it all together,” she noted.

Also speaking at the conference, the President , Nigeria Liquefied Petroleum Gas Association (NLPGA), Nuhu Yakubu, called for a review of the policies in the sector to encourage investment and growth .

He said:”There are programmes we should be reviewing , policies and regulations to enable import substitution and begin to apply our own natural endowments for our people, rather than exporting more resources to empower foreign countries.

“To do that, we actually need to work on the downstream because it’s the downstream that establishes the high stream.

“We have to look at how to deliver this gas to the market in a manner that’s cost effective for and their businesses in a manner that’s accessible and affordable and that should form part of our conversations.”

A

bu Dhabi -Total signed a strategic framework agreement with the Abu Dhabi National Oil Company (ADNOC), to explore joint research, development and deployment partnership opportunities in the areas of CO2 emission reductions and carbon capture, utilization and storage (CCUS).

The agreement brings together the best-in-class in low carbon technologies from ADNOC and Total, and expands on the long-standing partnership and collaboration between the two leading energy producers across the full value chain.

The agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and Patrick Pouyanné, Chairman & CEO of Total during a meeting in Abu Dhabi.

“We are pleased to strengthen our partnership and alliance with Total as we work towards a low carbon future. The agreement builds on our sustainability goal to decrease greenhouse gas (GHG) intensity by 25% by 2030 and reinforces ADNOC’s commitment to responsible oil and gas production as we deliver on our 2030 smart growth strategy. We look forward to leveraging this expertise and

collaborating with Total to further research and develop low carbon technologies and sustainable growth opportunities,” said H.E. Dr Sultan Ahmed Al Jaber, ADNOC Chief Executive Officer.

Under the terms of the agreement, ADNOC and Total will jointly explore opportunities to reduce CO2 emissions, improve energy efficiency and the use of renewable energy for oil and gas operations.

In the area of CCUS the companies will further develop joint research into new technologies covering carbon capture, storage solutions and enhanced oil recovery projects based on CO2 usage.

“We are very pleased to start this new cooperation with ADNOC, our long-term partner in the United Arab Emirates. This initiative will allow the two companies to join forces in several domains such as the reduction of carbon emissions on industrial sites, improvement of the energy efficiency in operations, and the development of innovative solutions and business models towards the CCUS chain. This is a perfect example of Total’s commitment to leverage its global presence and expertise to act towards its 2050 net-zero ambition alongside its long-standing key partners,” said Patrick Pouyanné, Chairman & CEO of Total.

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LOCAL CONTENT

NCDMB Trains 30 Graduates on Marine Survey

By Margaret Nongo-Okojokwu

T

hir t y graduates have commenced post graduate diploma programme on marine survey under the sponsorship of the Nigerian Content Development and Monitoring Board (NCDMB).

The kick-of f ceremony was held recently at the Niger Delta University, Wilberforce, Amassoma, Bayelsa State and the programme will equip participants with techniques to measure the quantity and quality of products such as crude oil, premium motor spirit (PMS), automotive gas oil (AGO) etc. On graduation, the participants would also be able to perform proper measurement and documentation of the nation’s income from oil and gas production.

20 graduates are enrolled in Marine Survey Level (12months) while 10 graduates will be trained as Marine Survey Upgrade (6months).

The classroom component of the training will hold concurrently at the Niger Delta University

Entrepreneurship Centre in Bayelsa State and Federal College of Fisheries and Marine Technology in Lagos state for 12 months and six months respectively.

He maintained that marine surveyors are key to sustaining marine activities in the oil and gas industry and supporting vessel owners to survey and recertify their vessels in-country.

On-the-job training for the participants will take place at the Centre for Marine Survey Nigeria (CMSN), Lagos and, with international certification from the International Naval Surveys Bureau and Phoenix Register Shipping.

He commended the Centre for Marine Surveyors Nigeria (CMSN) in conjunction with Wider Perspectives Limited and the Niger Delta University for developing a world class post graduate diploma training programme on Marine Survey.

Delivering his opening remarks at the event, the Executive Secretary, NCDMB, Engr. Simbi Wabote, ably represented by the General Manager, Capacity Building Division, Dr. Ama Ikuru, hinted that Nigerian ownership of marine vessels and equipment in the oil and gas industry is currently estimated about 40 percent.

He added that increasing vessel ownership and participation of Nigerians in the maritime category will go a long way in meeting the 70 percent Nigerian Content aspiration by 2027.

Also speaking at the event, the Vice Chancellor, Niger Delta University, Prof.

Samuel Edomiekumo appreciated the Board for partnering the university in such an important programme and assured that it would provide a conducive environment for learning.

A representative of Wider Perspectives Limited, Mrs. Edughom Hanson commended the Board for sponsoring the training and advised the participants to take the programme seriously, attend all lectures and comport themselves during the course of the programme.

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LOCAL CONTENT

President Buhari Commissions Waltersmith’s 5000BPD Modular Refinery, Hails NCDMB

By Margaret Nongo-Okojokwu

P

resident Muhammadu B u h a r i o n Tu e s d a y November 24th, performed the virtual commissioning of the 5,000 barrels per day (bpd) Waltersmith Modular Refinery, developed with 30 percent equity investment by the Nigerian Content Development and Monitoring Board (NCDMB) and described the role played by the Board as novel in concept and superb in delivery.

Mr. President also performed the groundbreaking of the refinery expansion at the Ibigwe field, Ochia Community, Ohaji-Egbema Local Government of Imo State. The new phase will first add 25,000 barrels

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per day processing capacity, before the final phase of new 20,000 bpd, bringing total capacity to 50,000 bpd.

Delivering his address virtually, President Buhari stated that the deployment of modular refineries was one of the four elements of the Refinery Roadmap introduced the Federal Government in 2018 to meet local needs for petroleum products and eliminate importation.

He assured that Government was making good progress in the Rehabilitation of existing refineries, Co-location of new refineries,

and Construction of greenfield refineries, with the firm goal of making Nigeria a net exporter of petroleum products in a few years’ time.

He hailed the bullish expansion plans of Waltersmith Refining & Petrochemical Company and directed the Ministry of Petroleum Resources and other relevant Government Agencies to provide the company all the necessary support with regards to access to crude oil and condensate feedstock for the timely delivery of the additional capacity.

LOCAL CONTENT

In his speech, Minister of State for Petroleum Resources, Chief Timipre Sylva applauded Waltersmith and NCDMB for embarking on the project in 2018, considering the immaturity and uncertainty in the downstream sector as at that time. ”It is only investors who have faith and believe in Nigeria, with clear delivery strategy that would have had such boldness,” he emphasised.

He clarified that efforts to achieve sufficiency of locally refined petroleum products “has to be a combination of large-scale processing plants as well as small to medium modular processors which will be enabled by our progressive policies and regulations.”

He challenged other investors to take a cue from Waltersmith and speed up action on similar development efforts to jointly grow the nation’s economy.

Speaking earlier, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote provided the basis of the Board’s equity investment in the 5,000bpd Waltersmith Modular Refinery. He hinted that Section 70(h) of the Nigerian Oil and Gas Industry Content Development

(NOGICD) Act mandates the Board to assist local contractors and Nigerian companies to develop their capabilities and capacities to further the attainment of Nigerian Content in the oil and gas sector of the economy.

He indicated that “this refinery creates job opportunities and business prospects, enhances availability of petroleum products, and provides ready market for some of our crude cargo within our shores.

At current capacity, this refinery will utilize about 1.8million barrels of crude oil. At the completion of the expansion works, this will increase to more than 16million barrels of crude and condensates every year.”

The Executive Secretary confirmed that NCDMB was also in partnership with other investors for the construction of a 2,500bpd modular refinery in Edo State, which will later be expanded to 10,000bpd and another 12,000bpd hydroskimming refinery in Bayelsa State, that will produce a full slate of petroleum products to serve immediate and nearby markets.

should be refined through modular refineries, noting that an average of 10 direct jobs are created for every 1,000barrels/day capacity of modular refinery. “We believe that about 3,000 direct jobs and over 100,000 indirect and induced jobs can be created if 10 percent of Nigeria’s oil production is refined using modular refineries.”

The Governor of Imo State, Senator Hope Uzodinma while delivering a goodwill message lauded President Buhari for providing purposeful leadership and conducive investment climate that enabled the establishment of the Waltersmith Modular Refinery within two years of conception. He recalled that successive administrations had awarded licenses for similar projects, with none of them coming to fruition.

He assured that the Imo State Government will partner with the host communities to protect the investment, while charging the company to discharge its statutory obligations to government and perform its corporate social responsibility to the communities.

He canvassed that at least 10 percent of Nigeria’s oil production

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LOCAL CONTENT

Uniport Student Wins N1m in Nigerian Content Essay Competition

By Margaret Nongo-Okojokwu Mr. Patrick Daziba Obah commended the choice of the topic for this year’s competition, hinting that Research and Development is pivotal to national development and the bedrock of sustainable Local Content.

Obah indicated that the Board’s developed a 10-year R&D roadmap to help promote the culture of research and innovation in Nigeria and support local content development in the oil and gas industry. He identified some key initiatives under the R&D roadmap to include the establishment of a US$50 million Nigerian Content R&D Fund, sponsorship of research prototypes, commercialization of research findings and setting up of R&D Centres of Excellence (CoE) in five Nigerian Universities.

A

second-year student of Pharmaceutical Sciences at the University of Port Harcourt, Rivers State, Mr. Abasiekeme Edet has won One Million Naira (N1,000,000) at the 4th edition of the Nigerian Content Development and Monitoring Board (NCDMB) Annual National Undergraduate Essay competition.

The prize giving ceremony was held in Yenagoa, Bayelsa State recently and the essay by the 18-year-old was adjudged the best amongst over 6000 entries submitted by undergraduates who must be within their first and 2nd year in the university.

The topic for this year’s essay contest was “Research & Development as a key lever for Local Content Implementation in Nigeria’s Oil and Gas Industry.”

Miss. Oluwadamilola Elizabeth Oluwafela, a 200-level Medical s tudent , O bafemi Awolowo University, Osun State emerged

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the first runner up and won a cash prize of Five Hundred Thousand Naira (N500,000.00), while Mr. Somtochukwu Samson Eze, a 100-level Medicine and Surgery student of University of Nigeria, Nsukka, Enugu State placed third and won a cash prize of Three Hundred Thousand Naira (N300,000.00).

Other finalists received HP laptops as consolation prizes.

In his keynote address, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote disclosed that the competition was geared towards developing human and material capacities, which is one of the key mandates of the Board. He explained that the Board sponsored the contest to create local content awareness among our vibrant youths and make them advocates of Nigerian Content, which is critical to sustainable development of our local economy, job creation and national security.

While congratulating the finalists for their hard work and dedication, he expressed excitement with the increase in the level of participation in the Essay Contest from undergraduates in various tertiary institutions across the country.

In his remarks, the General Manager, Corporate Communication and Zonal Coordination, NCDMB, Dr. Ginah O. Ginah mentioned that the competition is one of the Board’s interventions to improve the standard of education in Nigeria. He added that it aims to promote proficiency in writing, increase the participants’ awareness of local content and engender citizen engagement from undergraduate level.

Ginah who was represented by the Manager, Corporate Communication, Barr. Naboth Onyesoh stated that the contest is also intended to promote analytical and critical thinking among Nigerian youth which is vital for enrich problem-solving and for effective citizen engagement.

“Enlightened citizenry is required for The Executive Secretary who local content advocacy and to nudge was represented by the Director, public institutions to be more accountPlanning, Research and Statistics, able, transparent and alive to quality

LOCAL CONTENT service delivery, hence this competition is oriented to encourage reading and writing, promote analytical and critical thinking among Nigerian youth,” he added.

The chairman of the occasion and Vice Chancellor, Federal Medical University,

Prof Ebitimitula Etebu represented by the Registrar, Dr Akpos Adesi pointed out that national competitions such as this helps to foster national unification and boost academic excellence. He applauded the Board for sponsoring the competition and sought for its sustainability.

Mr. Abasiekeme Edet, the winner of the competition thanked the Board for organizing the competition, which provided a challenge for students to research extensively and proffer solutions around the issues of local content.

NCDMB Partners Enactus Nigeria, Launches First Nigerian Content Science and Technology Innovation Challenge

By Margaret Nongo-Okojokwu

T

he Nigerian Content Development and Monitoring Board (NCDMB) has entered a partnership with Enactus Nigeria for the implementation of its local content development program – the Nigerian Content Science and Technology Innovation Challenge

(STIC).

The Nigerian Content STIC is an enterprise development program designed to challenge students of all accredited Nigerian tertiary institutions to stretch their ingenuity and apply science & technology, to create

home-grown, innovative, and technologically driven business solutions that address some of our pressing everyday problems, accelerate reverse-innovation and create wealth, while also providing job opportunities for the growing numbers of the unemployed people in Nigeria.

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LOCAL CONTENT The STIC is also structured to provide opportunity for the successful applicants to experience top-ofthe-range personal and professional development through a mentorship program integrated into the project implementation. The successful applicants will also be applying themselves to the rigors of market research, critical thinking, ideation, product development & marketing, implementation, performance control, and proof of concept as they attempt to create their unique business solutions consistent with the winning ideas for the STIC.

Speaking at the official launch of the NC STIC held on Thursday, November 19th at the Radisson Blu Hotel, Victoria Island, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, enunciated how universities in developed countries have played key roles in innovation, research & development and adaptation of new technologies. However, Nigerian Universities have over the years remained less aggressive in pursuing expanded educational goals that will promote the commercialization of research products to promote rapid industrial growth and create jobs for our youths. He stated that supporting the creation and management of research-based, sus tainable entrep ren eurial ventures will not only fast-track

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the achievements of the Board’s 10-year strategic roadmap but will also spark technological innovation across Nigerian universities. He mentioned that the NC STIC, which is opened to all undergraduates in accredited tertiary institutions in Nigeria provides a unique platform for students and tertiary institutions, to embrace and imbibe the concept of Research and Development (R&D) in creating sustainable innovative solutions to life’s problems.

Also speaking at the official launch, the Country Director of Enactus

Nigeria, Mr Michael Ajayi, expressed his optimism in the potential of the Science and Technology Innovation Challenge (STIC), to positively engage the Nigerian youths, create job opportunities and discourage capital flight. In his words, “the STIC is also designed to encourage Nigerian students to embrace entrepreneurship as a career option by supporting the development of entrepreneurial ventures, promoting reverse-innovation and reducing the incidence of unemployment in the country. He further thanked the management team of the NCDMB for the courage and commitment to investing in the youth population of Nigeria through the STIC and stated that such deliberate and targeted investments like these truly prepare the youths of today to succeed and thrive now and in the future.

Providing more information about the implementation of the STIC, Ajayi indicated that the STIC is scheduled to run for a seven (7) month period from submission of applications online, to regional competitions and then to the grand finale. In his words, the science and technology innovation challenge

LOCAL CONTENT provides a unique opportunity for Nigerian students with the most innovative and compelling solutions to problems in any sector of the Nigerian economy, to get enrolled in the capacity development program that the STIC also provides. The winners of the STIC also gain access to funding, business incubation, mentorship, and training that will accelerate the journey from business ideation to the market.

delivered the keynote address where he expressed the commitment of his administration to collaborating with all stakeholders as well as to growing innovation as evidenced by the recent funding of seven innovative start-up companies in areas such as food security, secular economy and COVID-19 prevention, as well as the funding of research initiatives in University of Lagos, Lagos State University, Yaba College of Technology and the African Research Centre of Excellence

The Executive Governor of Lagos State, Dr Babajide Sanwo-Olu, speaking through his special adviser on innovation and technology,

Mr Olukayode Pitan, the MD/ CEO of Bank of Industry, Ms Teju Abisoye, the Executive Secretary of the Lagos State Employment Trust Fund (LSTEF) and Mr Tonye Cole,

the co-founder and former Executive Director of Sahara Energy who were also present at the event took turns to speak about how their organizations were supporting innovation and entrepreneurial development among Nigerian youths. They also challenged the youths to continually utilize opportunities such as those provided by the NCDMB through the STIC, as well as others provided

by Government and private sector, to showcase their creative potential and create the jobs for the future.

NCDMB to Sanction Defaulting Companies, Stakeholders ...Forges Collaboration with Key Agencies on NOGICD Act Enforcement

By Margaret Nongo-Okojokwu The Director, Legal Services of the board, Mr Umar Babangida, who spoke during a twoday workshop held in Abuja, said that the draft Nigerian Oil and Gas Industry Content Development Compliance and Enforcement Regulation 2020 was designed to plug some of the gaps that were identified in the NOGICD Act. He explained that non-compliance and breach of Nigerian content guidelines have now been categorised into minor infractions and serious ones.

T

he Nigerian Content Development and Monitoring Board (NCDMB) has reclassified the categories of sanctions to be meted out to defaulting operators and companies who fail to comply with its rules.

According to him, minor offences refer to first time defaults, not meeting deadlines

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LOCAL CONTENT for periodic reports and similar defaults and applicable sanctions which he said would include letter of warning, invitation of management team of the operator or stakeholder for corrective dialogue with the board.

On the other hand, the NCDMB said that serious infractions include repeated or persistent defaults and or deliberate refusal to comply with directives issued by the board.

Punishment for such offences, it stated, will include “naming and shaming of defaulting operator/ stakeholder with publicity within national and international oil and gas communities.

The board said that it would also involve the notification to other MDAs about the non-compliance of the operator/stakeholder, including request for the withdrawal of tax privileges, and/or preventing the operator/stakeholder from getting “cost recovery”, where applicable.

NCDMB added that part of the sanctions on defaulters may also be withdrawal of certificate of authorisation issued for the project under Section 8 of the Act and withdrawal of any approval given by the board as required under the provisions of Sections 17, 19 and 20 of the Act on Nigerian Content Compliance Certificate and Prosecution of the offenders.

Explaining further, the director said the board shall first give notice in writing to any operator or other stakeholder, specifying the identified default(s) and corrective step, action and/or remediation required to address an identified non-compliance. He added that failure to comply shall attract the imposition of appropriate sanctions and/or penalties as may be deemed applicable in the circumstances.

The event themed “Understanding the Objectives and Philosophy of the Nigerian Oil and Gas Industry Content Development Act” was attended by personnel from the

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Economic and Financial Crimes Commission, (EFCC), Independent Corrupt Practices Commission (ICPC), Nigeria Police, Nigerian Customs Service and other relevant agencies.

Speaking earlier, the Executive Secretary of NCDMB, Mr Simbi Wabote explained that the board organised the workshop to create synergy and collaboration with regulatory and enforcement agencies in the discharge of its mandate. He indicated that the Board held these types of workshops regularly with a view to strengthen collaboration with key stakeholders, particularly those that are not familiar with the Board’s roles in the oil and gas industry.

Former Inspector General of Police, Solomon Arase, who also made a presentation at the workshop identified gaps in the provisions of the NOGICD Act that would hamper the successful prosecution and conviction of companies deemed to have breached the provisions of the Act. He proposed some amendment to the act, notably, explicit definition of offences, expansion of the parties to offences and stiffer punishments for non-compliance.

In his intervention, Director, Monitoring and Evaluation, NCDMB, Mr. Akintunde Adelana listed some challenges faced by the board in implementing and enforcing the NOGICD Act. He stressed that they include inadequate strategic collaboration among stakeholders in the industry; overlapping of tasks by various government agencies, nonsubmission or late submission of statutory reports and inadequate coverage of the projects and activities in the Nigerian oil and gas industry as a result of manpower shortage.

He itemized others as execution of projects, contracts/services without approval from the board

and non-execution of NCDMB HCDI Training on the back of projects; non-deduction and remittance of NCDF one percent; utilisation of non-registered vendors in the NOGICJQ and deployment of expatriates without approval from NCDMB. Others, he stated, include the use of manpower license designated for Nigerian personnel only to deploy Expatriates; refusal to “Nigerianise” expatriate positions after statutory four years as captured in the act and non-submission of research and development plan by service companies.

In his presentation, the Director, Planning Research & Statistics, Mr. Daziba Patrick Obah proposed that the Nigeria Immigration Service (NIS) and Nigerian Civil Aviation Authority (NCAA) should enforce the guidelines of NCDMB on expatriate utilization by oil & gas companies on land and offshore locations.

“Enforcement and checks can be conducted at various entry points and access points to offshore locations by demanding for biometrics identity card before approving flight request by expatriates to offshore oil and gas operations,” he said.

H e a ls o s u g ge s te d t hat a collaboration of the Military and the Board in deepening R&D and domestication of hardware and software technology, maintenance techniques for military equipment.

Enforcement agencies should also join the essential services sectoral working group and shipping and logistics sectorial working group to share insights and open channels of communication,” he added.

The two-day workshop was attended by personnel from the Economic and Financial Crimes Commission, (EFCC), Independent Corrupt Practices Commission (ICPC), Nigeria Police, Nigerian Customs Service and other relevant agencies.

LOCAL CONTENT

Total Invests $10bn In Nigeria In Seven Years ...Urges FG To Beef Up Security on Pipeline Facilities

By Margaret Nongo-Okojokwu

The Total Managing Director also assured that the company would always partner with NAPE towards the economic development of the country. “Over the years, NAPE has made high quality contributions from the annual conferences which have positively impacted our oil & gas industry as well as the Nigerian economy.

Mike Sangster, MD, Total E&P

T

otal E xploration an d Production Nigeria Limited has disclosed that it has invested an approximately US$10 billion in the country from 2013 to date. It said that it had also taken steps to drive down greenhouse gas emissions; pursuing a zero-flare principle on all new projects as is evident with EGINA, OML58 upgrade, OFON field and others.

available potentially viable projects.

Managing Director, Total E and P Nigeria Limited, Mike Sangster, made this known recently, at the virtual Conference and Exhibition of the Nigerian Association of Petroleum Explorationist (NAPE).

He stressed the need for Nigeria to plan and exist with the current reality of low prices and optimise its opportunities and strengths in the area of technology, diversification and pursuit of new energies.

Worried about the insecurity of pipeline facilities in the country, Sangster called on the governments at all levels to provide the needed security for all oil installations as well as reduce incidence of oil theft.

He disclosed further that Nigeria had benefitted from less than five per cent of all investments in oil and gas in Africa between 2015 and 2019 despite having the largest reserves.

“That is to say that the USD 3bn invested in Nigerian projects which took Final Investment Decision (FID) between 2015 and 2019 represents 5% of all oil and gas funds invested in Africa”, he said. He added that no major investment decision was taken in Deepwater Nigeria between 2015 and 2019, despite a number of

The Total boss assured that the company would continue to invest in Nigeria and also contribute constructively to the ongoing debate on the Petroleum Industry Bill, saying ”a progressive, win-win PIB will no doubt be the catalyst needed for a new wave of hydrocarbon exploration and development investment in Nigeria”.

“One of the main challenges facing oil and gas companies’ operations is that of pipeline vandalism and oil theft with estimated large volumes of oil stolen in the oil-producing areas across the country”, he noted.

The theme of this management session: “Future of Oil and Gas Industry in Low Oil Price Environment: Survival Strategies”cannot be more appropriate, especially in the current global situation.

“With the help of technology, the world is now able to access oil from domains previously unimaginable.

The result is an abundance of oil and gas resources around the world.

The challenge now is how to deploy technology to drive down costs in order to remain competitive.

“Although we are all in business for profit, a situation that makes competition inevitable, for better cost efficiency, we need to explore ways of collaboration as partners with the same ultimate goal, to share projects and associated costs that would ordinarily overwhelm an individual player. These could be envisaged in areas such as rig clubs, seismic vessels sharing, just to mention a few. An enabling policy is inevitable for success in this regard”, he said.

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PHOTO GALLERY

Commissioning of the NCDMB Backed Waltersmith’s 5000BPD Modular Refinery & Groundbreaking Ceremony for the 45,000BPD Refinery by His Excellency President Muhammadu Buhari at Obigwe, Ohaji Imo State.

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PHOTO GALLERY

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LOCAL CONTENT

‘NLNG’s Train-7 to Create 52,000 Jobs’ – Attah

By Margaret Nongo-Okojokwu Nigerian companies’ capacity and personnel in the oil and gas sector had improved to handle high end technical projects following the efforts of the Nigeria Content Development and Monitoring Board.

The Managing Director and Chief Executive Officer of the Nigerian Liquified Natural Gas, Tony Attah, has said that at least 55 per cent of the scope of work on the newly signed Train 7 project of the Nigerian Liquefied Natural Gas Limited (NLNG) will be domesticated in Nigeria to create an additional 50,000 jobs in the country.

Attah said the move was to demonstrate to the world that

Attah said this in Port Harcourt recently during a reception ceremony organised by the Junior Chambers International (JCI) to honour Engr.

Simbi Wabote, the Executive Secretary of the Nigeria Content Development and Monitoring Board on his reappointment as the Executive Secretary of the board.

The MD said the Train 7 project would create 12,000 direct jobs and 40,000 indirect jobs. He said, “I dare say that without the support of the Executive Secretary, personally committing, we may not have Train 7 today. Train 7 means 12,000 jobs directly and based on the board’s calculation 40,000 additional jobs indirectly.

“Let me dimension it for you, the

relative peace that the entire Niger Delta enjoys today called the Amnesty Programme was 35,000 people who were positively put to some good and employment.

“So think about one project that is bringing the opportunity of 50,000 people directly or indirectly being gainfully employed, then you understand what this man (Wabote) has done for Nigeria and did for Niger Delta.

“On top of that we are saying 55 per cent of that scope will be domiciled and domesticated and Nigerians will be directly involved in more than half of the scope of this particular project and we are talking of over $10bn in terms of the overall Train 7 investment.”

On his part, Wabote said that the Federal Government was finalising plans to site a 500 barrel per day capacity modular refinery in Imo State to boost local content in the South-East.

FG Supporting Local Meter Manufacturers – Perm Sec

T

he Permanent Secretary, Federal Ministry of Power, Mr Chinyeaka Ohaa, has said the Federal Government will continue to support the growth of local meter manufacturers in the country. Ohaa noted that the Federal Government had launched an initiative to accelerate meter rollout in the power sector, saying the Central Bank of Nigeria had decided to fund the provision of six million meters.

He said the government remained committed to encouraging local meter manufacturing, adding, “If you look at the new power policy, we say that 30 per cent of meters should have local content.” Speaking at the commencement of a free meter installation training programme organised by Momas Electricity Meters Manufacturing Company Limited at its facility in Ogun State, the permanent secretary lauded

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By Margaret Nongo-Okojokwu the Chairman, MEMMCOL, Mr Kola Balogun, for the initiative.

“We are proud of him as a Nigerian who has invested for 30 years in the meter industry. I am going to report back what I have seen; it is amazing,” Ohaa said.

He said the training programme would help to empower the participants and create many jobs in the country. Balogun said there was an urgent need to train more Nigerians on meter installation to complement government’s efforts towards bridging the metering gap in the power sector.

The MEMMCOL boss said, “This is our own way of contributing our quota to ensure that the initiative is successful. We have decided to train selected number of graduates across all the six geopolitical zones in

the country on metering technology through our Momas Metering School for free.

“In addition to the training, we shall provide the trainees with kits; these will contain all the relevant tools for electricity meter installation. There will be enough jobs for the youths to do and we would also engage them in the execution of some of our projects.”

NIGERIA’S ENERGY CONFERENCE

ENERGY AS THE ENGINE FOR DEVELOPMENT AND DIVERSIFICATION LAGOS 26-27 OCTOBER 2021 www.nigeriaogp.com

SPEAK speak@africaoilandpower.com

ATTEND register@africaoilandpower.com

SPONSOR & EXHIBIT sales@africaoilandpower.com

MEDIA media@africaoilandpower.com

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By Ikenna Omeje and Jerome Onoja

S

While revamping the ailing assets, the country has restated its commitment to follow through its policy to attract investments and boost the proliferation of modular refineries across the country.

For over two decades, Nigeria has been importing virtually all the petroleum products used in the country, as a result of the sorry state of the four nation-owned refineries located in Kaduna, Port Harcourt and Warri.

These refineries have been performing abysmally due to years of neglect, mismanagement and pillage, leading to expenditure on millions of US dollars yearly on fuel importation.

Leading the new narrative is a Public Private Partnership (PPP) between the government agency, Nigerian Content Development and Monitoring Board (NCDMB), led by its Executive Secretary, Engr Simbi Wabote and a marginal field operator, Waltersmith Petroman Oil Limited chaired by Mr. Abdulrazaq Isa. The partnership was forged at a time the downstream sector looked very unattractive as Federal Government and petroleum product

equel to the recent commissioning of Waltersmith’s 5,000 barrels per day refinery at Ibigwe, this article examines the role modular refineries will play in the scheme of things.

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importers sparred over unpaid subsidy arrears running into millions of US dollars while government also maintained stiff regulation of the prices of products. The unreflective price control measure remained a limiting factor against free entry of willing investors into the sector.

At the commissioning of the modular refinery and ground breaking ceremony of the second-phase 45, 000 barrels per day, the essence of the PPP, President Muhammadu Buhari again highlighted the administration’s plan. He said: “The deployment of Modular Refineries represents one of the four key elements of our Refinery Roadmap rolled out in 2018

COVER STORY aimed at addressing the challenges in the downstream sector to meet our local needs and eliminate importation of petroleum products”.

He further spoke on the plans by the government to collocate refineries for efficiency, as well as the construction of greenfield refineries; all geared towards sufficiency for the local market.

Nigeria’s demand for refined products: the numbers With a population of over 200 million people and an annual growth rate of 2.7 percent, the demand for energy through refined petroleum products is expected to rise. As at September 2020, the country consumed 486 thousand barrels of crude oil per day. But, the bulk of this commodity came into the country as imports; some through special arrangements for swaps, by exchanging crude with refined product and at other times through outright purchase. With this level of import, there’s enough room for every litre of white product that can be sourced locally.

Specifically, in its Petroleum Product Import and Consumption report, the National Bureau of Statistics (NBS) said the country imported 5.6 billion litres of petrol in Q2 and 5.09 billion litres in Q3 2019. The bureau also stated that the country imported 354.7 million litres of Liquefied Petroleum Gas (LPG) in Q2 and 429.38 million litres in Q3 2019.

Further breakdown of the report shows that the country consumed 4.9 billion litres of petrol in Q3 2019, compared to the 5.18 billion litres consumed in Q2, which indicates a decrease of 1.09 billion litres in consumption in 3 months. The volume of petrol imported into the country in September in the year under review, stood at 1.46 billion litres, dropping from 1.64 billion litres in August and 1.99 billion litres in July 2019. The report also showed that the importation of Petrol reduced by 9.13 percent, while the importation of LPG (Cooking Gas) increased by 21 percent.

President Muhammadu Buhari

In February 2018, the NNPC said it spent $5.8 billion on fuel importation since late 2017, as it combated a fuel shortage that had left people queuing

for hours at filling stations and hobbled an already-struggling economy. In a statement, the corporation said: “The corporation’s intervention became necessary following the inability of the major and independent marketers to import the product because of the high landing cost which made cost recovery and profitability difficult.”

Also, in March this year, NBS in its Foreign Trade Statistics for the Fourth Quarter of 2019 said the country spent N1.713 trillion on the importation of petrol, in 2019. The NBS revealed that the amount the country spent on fuel import in 2019 declined by 41.9 percent from N2.95 trillion spent on the import of the commodity in 2018.

According to the NBS data, fuel import accounted for 10.1 per cent of Nigeria’s total import in 2019, compared to 22.4 percent recorded in 2018. In addition, the report noted that PMS import accounted for 66.9 percent of the total of N2.56 trillion spent on fuels and lubricants. The report noted that total imports stood at N16.96 trillion, appreciating by 28.8 percent from N13.17 trillion recorded in 2018.

Low refining capacity had for years compounded the problem of fuel subsidy. Early in September while speaking on recent removal of fuel subsidy, Minister of Information and Culture, Lai Mohammed disclosed that the nation spent N10. 413 trillion on fuel subsidy in the last 13 years (2006-2019).

The Minister said, “The cost of fuel subsidy is too high and unsustainable.

From 2006 to 2019, fuel subsidy gulped N10.413trillion. That is an average of N743.8 billion per annum.

Lai Mohammed

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COVER STORY

“

“Government can no longer afford to subsidize petrol prices, because of its many negative consequences.

These include a return to the costly subsidy regime. With 60% less revenues today, we cannot afford the cost.

Extra measures to ensure fuel sufficiency In a bid to ensure adequate supply of refined petroleum product and permanently put an end to fuel queues, the Petroleum Ministry ensures adequate storage, beyond the immediate need. The Minister of State for Petroleum Resources , Chief Timipre Sylva recently stated that, “As at 26th of May 2020, the cumulative depot stock of PMS (Petrol), the depots was 1,096, 283, 694 litres (combined PMS stock owned by PPMC, Major and Independent Marketers).

60 million to about 52 million per day, a very significant reduction indeed. “ D e p a r tm e nt of Petrol e um Resources (DPR) also launched the Crude Oil lifting and Tracking system (COT) which tracks all crude oil being exported from Nigeria,” he added In a separate document titled, “National Fuel Situation Report”, the DPR stated that Lagos zone had the highest stock with 526,321,545 litres in 24 depots, while Warri zone followed with 217,285, 169 litres in 12 depots.

Other critical depots stuffed with adequate white product include: Calabar/Eket, Port Harcourt, Owerri and Kaduna.

A gradual shift from status quo

He further added: “To curb crude oil theft and product smuggling across our border, a lot has been done.Nigerian National Petroleum Corporation (NNPC) launched ‘project white’ which successfully, within a very short time, brought down our daily consumption numbers from 62 million or over

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Vice President Yemi Osinbajo

“

I do not think that, it is the business of the government to run the refinery. It should be the business of the private sector, which is why we are trying to focus on assisting the private sector to develop modular refineries.”

Mele kyari

Chief Timipre Sylva

experiencing now.

Latest audited financial statements by the NNPC) revealed that the country’s owned refineries made a total loss of N406.62 billion in 2017 and 2018. It is heart-wrenching that the Kaduna Refinery and Petrochemical Company Limited did not generate any revenue in 2018, but incurred a total cost of N64.68 billion, comprising N24.69 billion direct cost and N39.99 billion administrative expenses.

Speaking recently in favour of modular refineries, the VicePresident Yemi Osinbajo said: “If the refinery is left in the hands of the government, it will continue to experience the same problem it is

Explaining the fate of the refineries, Chief Timipre Sylva, stated that the country’s refineries had performed below their capacity over the years because the assets were not run as business to yield requisite returns and add value to Nigeria’s economy.

He said, “We ran them as a government. If a seal starts to leak in Port Harcourt refinery, the approval process to get that seal fixed is a long and tortuous bureaucratic process.

By the time you go through that whole process and go back to fix that seal, maybe another two have started leaking as well.

“You don’t run a refinery like that.

You must run it as a business.

“If you run it as a business, it means this is our business, this is our

COVER STORY bread and butter; we cannot allow the oil industry to die. Let us get the profit, let us share the profit and let’s ensure that this money will be reinvested to improve the oil sector.”

What is a modular refinery?

According to Proshared.com, “By way of definition, a modular petroleum refinery is a process plant for refining crude oil that is engineered and constructed on largely skid-mounted structures. Each skid contains a section of the entire process plant and through interconnecting piping the component skids are linked together to form an integrated operable process plant at the site.

A modular skid unit houses a process system within a frame so that the system can be transported easily.

The modular process skid offers a high level of quality control, efficient use of space and pre-delivery testing to ensure ultimate functionality.

Modular refineries are usually available in capacities ranging from 1,000 to 30,000 barrels per day (bpd).”

Waltersmith refinery

On the other hand, the Niger Delta Petroleum Resources (NDPR) refinery is currently producing 1,000 barrels per day and there are plans to increase the capacity to 11,000 barrels per day.

Lastly, there is the OPAC Modular Refinery in Kwale, Delta State with a 7,000 bpd capacity, privately owned

by Pillar Oil.

Modular refineries have become the way to go for developing and underdeveloped countries across the world because they are cost effective, easy to manage and run.

Some Inaugurated modular refineries: The Federal Government seems to be getting it right with its current push for investments in modular refineries. The NCDMB is not just involved in the equity investments in Waltersmith modular refinery, it also has equities in Azikel and Duport modular refineries.

Waltersmith refinery, which is located in Ibigwe, Imo State, is a 5,000 barrels per day (bpd) modular refinery. At the commissioning of the asset belonging to the Public Private Partnership (PPP), the Executive Secretary of NCDMB, Engr. Simbi Wabote made it known that the second phase will have a capacity of 45,000 bpd. As such, the occasion also doubled as a ground-breaking event for launching the project’s second phase.

Engr. Simbi Wabote

The Ibigwe asset belongs to Waltersmith Petroman Oil Limited, a Nigerian energy company and the NCDMB on a 70 and 30 per cent equity shares distribution.

Its primary feedstock of 5,000bpd comes from its own operated crude oil, while alternative sources come from NNPC/SEPLAT OML-53 joint venture Ohaji South production field which is processed at Waltersmith’s Ibigwe flow station.

Azikel in Gbaran, Bayelsa State, is a 12,000 bpd, while Duport is a 2,500 bpd refinery, and is located in Egbakor, Edo State.

Speaking recently in Lagos when the Minister of Information, Culture, Lai Mohammed paid him a working visit, the Director, Department of Petroleum Resources , Sarki Auwalu said that with five built refinery plants across the country and seven in the making, the country will be a net exporter of petroleum products by 2022.

Targeted capacity from modular refineries Speaking at the commissioning ceremony of the Ibigwe refinery, the Executive Secretary of NCDMB, Eng Simbi K. Wabote stated that the Board’s initiative goes beyond its partnership with Waltersmith. He noted that:

“

“within the lifespan of this administration, we will increase the modular refining capacity to about 80,000 barrels per day.

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COVER STORY On his part, the Director of DPR, Sarki Auwalu assured that the flow of import would reverse when the new refineries come on stream in the next two years, adding that

Sarki Auwalu

In furtherance of this administration’s commitment to fuel sufficiency, a bilateral agreement between Nigeria and Niger has been formed. The pact between President Muhammadu Buhari and President Mahamadou Issoufou – through the Nigerian National Petroleum Corporation and Niger Republic’s National Oil Company, Societe Nigerienne De Petrole (SONIDEP), is on petroleum products transportation and storage.

Niger Republic’s Soraz modular refinery, located in Zinder, is about 260km from the Nigerian border, and has an installed refining capacity of 20,000 barrels per day. The country’s total domestic requirement is about 5,000bpd, thus leaving a huge surplus of about 15,000 bpd, mostly for export.

“

institutions, international equity markets, local capital markets, pension funds, mutual funds, insurance companies, international commercial and investment banks, local and international bond markets, suppliers’ credit, specialized international energy funds, etc.”

the feat would be achieved through the combined capacity of 375,000 barrels per day from 27 modular refineries, 650,000 barrels from the Dangote refinery and the 445,000 barrels from the government refineries.

The statement by DPR Director, shows that more investment in modular refineries will not only help the country to meet domestic demand, it will make the country a net exporter of petroleum products, if not in the next two years, certainly in the near future.

As at September 2020, there were 27 valid refinery licenses issued to private companies in the country

by DPR. A total of 40 licenses were initially issued and the collective projection for the licences was 101 million barrels production capacity. Out of this number, the construction of two – OPAC refineries and Waltersmith refining and Petrochemical Company – have been completed.

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Prof Chijioke Nwaozuzu

President Mahamadou Issoufou

Economics of modular refineries While encouraging private investors into refineries, the Deputy-Director at Emerald Energy Institute for Energy & Petroleum Economics, Policy, & Strategic Studies, University of Port Harcourt, Prof Chijioke Nwaozuzu, says that “Investors in modular refinery projects should not rest on their oars and expect government to secure and guarantee all the funding and inputs for their projects. They need to explore various sources of equity and debt financing, which may include multilateral and bilateral financial

Investment in modular refineries will not only help the country, it will ensure quick return on investment for investors. In 2017 a stakeholder in the oil and gas event, global consulting firm, Price Waterhouse Cooper (PwC) informed that setting up a diesel-oriented modular refinery in Nigeria could fetch investors five times their initial investment within two years and guarantee an operating profit margin of about 15 percent.

Additionally, in the report titled ‘Nigeria’s Refining Revolution’, PWC stated that the economic viability of a refinery is dependent on the interaction of three elements, type of crude oil used, the complexity of the refining equipment (refinery configuration) and the desired type and quality of products produced.

COVER STORY According to the global consulting firm,

“

a key requirement for refining profitability is finding the sweet spot between cost of inputs and price of outputs in a highly volatile environment influenced by global, regional, and local supply and demand fluctuations.

It said, “Refineries have minimal influence over the price of input and outputs and, therefore, must ensure operational efficiency to improve profitability and gain competitive edge. This entails reducing operating costs such as labour, maintenance, energy (electricity and natural gas) etc. to the barest minimum.

“Efficiency is achieved through operational excellence, innovation, maintenance & upgrades and optimisation to produce more output from fewer inputs.

relatively low capital cost, flexibility and short payback period make it distinctly attractive.

“For the independent producer, participating in a modular refining project improves cash flow, ensures crude oil production is sufficiently optimised and delivers value beyond the traditional oil production business model.

“

“For downstream marketers seeking to hedge against foreign exchange exposure, domesticate fuel supply and build local capacity, the modular refinery is a winning strategy.”

In his presentation at the 2020 Nigerian International Petroleum Summit (NIPS) in Abuja, Chief Executive Officer of OVH Energy, Mr. Huub Stokman, stated that a free market was critical to driving Nigeria’s downstream sector development.

“Although refineries share certain similarities, each refining asset is a unique and complex industrial facility, with some flexibility in the crude slate it can process and the mix of product yields it can refine.

refining capacity which is imminent both with the traditional and the modular refineries will change the paradigm from an import country to a self-sufficient country, and that’s a key catalyst for the rest of the industry.

“There are some benefits of these refineries as a catalyst. Product quality in my view will improve which will aid the environment and also reduce consumption.”

Improving security Oil companies’ budget on maintaining their security architecture has always kept the average cost on each barrel far above what is obtainable in other environments. However, this recurring concern with asset ownership in Nigeria received a huge positive feedback as a result of several activities politically and from best practices by business owners who have embraced robust Global Memorandum of Understanding (GMoU) models.

According to the spokesperson of NNPC, Dr Kenny Obateru, NNPC is not relenting on its continued collaboration with local host and access communities, as well as other stakeholders, to bring the security malaise under control.

“ Fa c to r s s u c h a s r e f i n e r y configuration and complexity directly impact refinery end products while location and transportation infrastructure impact energy, labour and compliance costs.”

PWC further stated that, “Investors are constantly faced with tough decisions on refinery setup options which will yield the highest returns.

“Our analysis reveals that the modular refinery, an off-the shelf solution, is a cost effective supply option for investors especially when diesel is the lightest yield. The

Mr. Huub Stokman

He said, “On refinery, you can’t have a conversation around the downstream industry without the refining. I think that the enhanced

Dr Kenny Obateru

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COVER STORY In the corporation’s May 2020 version of Monthly Financial and Operations Report (MFOR), it indicated that 37 pipeline points were vandalized. This represents about 43% decrease from the 65 points recorded in April 2020.

Consistency on the par t of government and its partners will see these numbers go down drastically, a pointer to continuous investment from prospects locally and internationally.

Conclusion At the commissioning of the Ibigwe asset, the chairman of Waltersmith,Mr. Abdulrazaq Isa noted that,

“

“When the second phase of the industrial complex is completed by 2025, the Obigwe facility would have generated over 18,000 jobs at the commissioning.

“This will then be followed by an even greater exponential growth in job creation when the manufacturing, commercial, residential and technology innovation hubs go into operation post 2025,” he added, while confirming that regulatory licence for the 300MW power Genco has been granted it by the Nigerian Electricity Regulatory Commission (NERC).

From job creation, reduced pressure on foreign exchange used for importation, to multiple layers of industrialisation, opportunities abound locally with investment in modular refineries.

Beyond the bold steps which led to deregulation of the downstream sector of the industry, it would be great to see more incentives from the government. Equity participation

by NCDMB is exemplary but there’s only so much a government agency can do, especially when there’s paucity of funds.

Development Bank, and several other multilateral institutions.

For easy movement of feedstock and refined products, it is expedient that government lead activities around developing infrastructure to enhance existing inland waterways, which are too shallow to accommodate safe use of oil tankers to transport crude oil and refined products to the hinterlands. Another string of opportunities exist here for investment in dredging and barges.

Perhaps, a PPP model would be fine.

With the foregoing, investors now have a clear line of sight for their investments and an obvious surge in numbers of FID for modular refineries ought to happen in coming months.

Here’s a challenge and opportunity for the Bank of Industry, African Mr. Abdulrazaq Isa

ACROSS AFRICA Dispute Settlement Between PetroNor and Senegal Over the ROP and SOSP Blocks Postponed to 2021

etroNor and the Senegalese government will soon resolve their differences. The two parties, who have not been able for about 2 years to agree on the ownership rights of the ROP and SOSP blocks, want to find a compromise in early 2021.

Senegalese government have decided to postpone until 2021 the resolution of the dispute between them concerning the exploitation rights of the blocks Rufisque Offshore Profond (ROP) and Senegal Offshore Sud Profond (SOSP), in Senegal. It should be noted that the Norwegian company is claiming title to the said blocks after the Senegalese authorities tried to revoke their right, for alleged breach of exploration obligations. This dispute, which dates back about 2 years, is brought before the International Center for the Settlement of Investment Disputes (ICSID).

The company PetroNor and the

Knut Sovold, Managing Director

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of PetroNor reportedly traveled to Dakar last week to ensure the continuation of the progressive dialogue and to negotiate an end to the arbitration process, which has proved costly for both parties.

According to industry sources, an agreement could be reached allowing the company to keep the title of the SOSP license off the coast of Casamance, in exchange for the transfer of the ROP license, which has in the meantime been reassigned to the French group Total. PetroNor is a company owned equally by the Norwegian company NOR Energy and Petromal, an oil investment subsidiary of the Abu Dhabi National Holding.

ACROSS AFRICA

Total Acquires Tullow Oil in Uganda Daniel Terungwa (early this year) when Tullow announced that it was selling its entire stake in Uganda.

A

nglo-Irish company Tullow Oil has announced the approval of their sale transaction (farm down) to French Total E&P by the government, paving way for the company winding up its operations in Uganda after almost 16 years.

The company, in a statement issued recently from their London office, made this known after “executing a binding tax agreement that reflects the pre-agreed principles on the tax treatment of the sale of Tullow’s Ugandan assets to Total” with the Uganda Revenue Authority (URA).

Following the collapse of the first farm down last year in August and the ensuing tight rope pulling between government and Tullow/Total E&P, especially over tax issues, the two sides later in October reached a compromise on the treatment tax, which would be maintained later

Also, the Ugandan government will be raking in only Shs54.6b ($14.6m) on the transaction down from Shs317b ($85m) which Tullow offered initially on premise that part of the money ($700m) was going to be reinvested in the development phase, while government, which did not buy the argument, insisted on a sum of $167m (Shs624.5b) assessed by URA. In the same vein, the company indicated that the Energy minister, Ms Goretti Kituttu, had approved the transfer of operatorship for Block 2 in Buliisa, east of Lake Albert.

“With all the government-related conditions to closing having been satisfied, Tullow expects the transaction to close in the coming days after completing certain customary pre-closing steps with Total,” the statement indicated.

Upon final completion of the transaction, Total E&P will pay Tullow Shs1.8 trillion ($500m), and another Shs280b ($75m) paid whenever government and the oil companies (Total E&P and Cnooc) reach a

Final Investment Decision (FID). In addition, Tullow is entitled to receive contingent payments linked to the oil price payable after production commences.

The government will earn Shs54.6b ($14.6m) in Capital Gains Taxes off the transaction.

Total E&P will now retain majority shareholding with 66.7 percent and Cnooc, which declined to exercise its pre-emptive rights—to acquire half of the shares floated by Tullow— will remain with 33 per cent in the upstream (oil fields).

The defined shareholding in the upstream paves way for commencement of negotiations on the shareholders agreement that details the sharing holding structure for the proposed East African Crude Oil Pipeline (EACOP) that will transport Uganda’s crude oil from Hoima to Tanga port in Tanzania en route to the market.

Currently, the working structure is that both Total E&P and Cnooc each take 37.5 per cent stake, Uganda through the National Pipeline Company take 15 per cent, and Tanzania through its national oil company— Tanzania Petroleum Development Corporation (TPDC), takes a five per cent stake.

Angola’s Sonangol, Gemcorp to Spend $920m on Cabinda Refinery

S

onangol, Angola’s state-run oil company, said it made a final investment decision with Gemcorp Capital LLP to build a refinery in the northern enclave of Cabinda that will reduce the country’s dependence on imports.

The two companies will spend $220 million in the first phase of construction, which began in March, and includes installing half of the plant’s processing capacity of 60,000 barrels a day. The second and third phases will turn the plant into a “total conversion” refinery, according to a statement Friday. Gemcorp will contribute 90% to the investment and Sonangol will contribute 10%.

“The construction of this refinery will provide an increase in the processing capacity of crude oil and a considerable reduction in the country’s dependence on imports of refined products,” Sonangol Chairman Sebastiao Gaspar Martins said in the statement. The refinery should start operating in the first quarter of 2022.

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ACROSS AFRICA

Oil Industry Keeps an Eye on Angola with Top 25 Movers and Shakers to Watch List

By Margaret Nongo-Okojokwu

T

he lates t Top 25 Movers & Shakers Watch List released earlier this week by the African Energy Chamber (EnergyChamber.org) highlights how important 2021 will be for the Angolan oil & gas industry.

Sub-Saharan Africa’s second biggest oil producing nation has been surfing on a wave of ambitious reforms since 2018 which could prove very beneficial to put the country back on a path to recovery in 2021.

H.E. João Lourenço, President of the Republic of Angola, made it to the list for the first time after several years of reforming the industry and making it one of the most competitive on the continent. Via several presidential decrees signed

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in 2018, 2019 and 2020, the President has truly revived Angola’s hydrocarbons sector and its attractiveness for investors. As Angola recovers from the shock of the Covid-19 pandemic and yet another economic crisis, President Lourenço’s leadership is more important than ever to further support sector recover y and boost local content development.

The country’s industry will also be marked by key offshore projects expected to move forward in 2021 and notably led by international majors Total and Eni. Nicolas Terraz, President for Africa at Total Exploration & Production, is another executive who made it to the Chamber’s TOP 25 for 2021. His piloting of key projects

across the continent, especially in Eastern and Southern Africa, will be closely watched next year. This notably includes several brownfield expansions in deep water acreages in Angola, and the planned drilling of the world’s deepest well in Block 48.

Guido Brusco, listed for the second year in a row, will be another key figure able to impact the future of Angola’s oil sector.

Recently promoted Director of Eni’s global upstream portfolio, Guido has a long experience in Africa and strong understanding of the continent’s dynamics and opportunities. As he makes strategic decisions to rationalize Eni’s upstream spend, the future of major Angolan assets like Block 15/06 is on the line.

ACROSS AFRICA

Liberia Govt Extends Licensing Round, 2020

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he Government of Liberia (GOL), through the Liberia Petroleum Regulator y Authority (LPRA), has announced an extension of the time frame for the Liberia License Round, 2020 affecting nine (9) blocks in the highly prospective Harper Basin.

Launched in April 2020, the license round attracted interests from diverse players within the industries with expectation of closure by October 2020. The Government previous announcement set the deadline for Pre-qualification on October 31, 2020 with qualified candidates required to submit final bids by February 2021.

However, due to the devastating impact of the COVID-19 and the drastic slump in oil prices over the designated period, the Government has announced an extension of the deadline for pre-qualification from October 31, 2020 to March 31, 2021 while the new deadline for submission of bids by qualified companies will now run from April 30, 2021 to May 31, 2021.

Thereafter, LPRA will issue notice of awards to companies whose bids have been accepted and evaluated as most responsive and invite same to formalize a petroleum sharing agreement.

The new adjustment is to allow interested parties the opportunity to absorb the shock of the virus and low prices while reanalyzing their investment portfolio. In a critically challenging period like this, the government believes that is the best and most responsible thing to do in order to accommodate and extenuate the risk associated with investment in the petroleum sector.

In addition to the extension of the bid round, LPRA has also announced new changes to the commercial terms as a mean of incentivizing investment in Liberia. These changes include the adjustment of requirements for signature bonus from a minimum of 8 million United States Dollars payable in one tranche to a more flexible option. Under this new adjustment, there will be no minimum requirement thereby allowing companies to submit bids describing their proposal for signature bonus.

This allows the industry to determine the signature value for each block based on submissions. In addition to designating the signature bonus as a biddable item, LPRA has announced that interested bidders will have an opportunity to negotiate a payment schedule with the Government of Liberia. Also, LPRA has modified the mandatory 2D seismic data purchase requirement for the entire Harper Basin to require interested bidders to license 2D seismic data for the particular block (s) of interest.

Rosgeo Completes Phase 1 of Geological Mapping in Equatorial Guinea

A

month after it started a historic geological mapping project in Equatorial Guinea’s Rio Muni region, Russia’s state-owned joint stock company Rosgeo has made significant progress and is stepping up exploration efforts on the country’s mainland. The company has now successfully completed phase 1 of the project’s scouting works, and is moving to phase 2.

The landmark exploration program is executed under two services contract signed by the Ministry of Mines and Hydrocarbons in 2020 with JSC Zarubezhgeologia and JSC Yuzhmorgeologia, internationally operating subsidiaries of Rosgeo.

It notably covers an initial phase of seismic acquisition in transit zone and state geological mapping in the Rio Muni area, in mainland Equatorial Guinea.

As a result, JSC Zarubezhgeologia

has been performing scouting works for state geological mapping, while JSC Yuzhmorgeologia has been performing the same for complex seismic acquisition in the transit zone of Rio Muni. The area, which includes large onshore zones but also shallow water areas, is believed to be one of the most promising exploration frontiers in Equatorial Guinea. It could notably turn the country once again into a hotspot for natural resources exploration.

Increased exploration by Rosgeo is expected not only to help in sustaining and increasing domestic output of oil and gas, but also in proving additional reserves in key minerals to help Equatorial Guinea further diversify its economy.

Equatorial Guinea and the Russian Federation, but could also shape the future of our natural resources industry. Our mainland is one of the richest regions of the country for mining and minerals which we have identified as strong sectors to diversify our economy and create jobs. We have also always believed in the onshore hydrocarbons potential of the region, and understanding its geology will prove extremely beneficial to support future oil & gas activities there which could be carried out by local operators,” declared H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons.

“The geological mapping project undertaken by Rosgeo in the Rio Muni is not only a new pillar of energy cooperation between the Republic of

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SOCIAL INVESTMENT

PIB: Oil Companies to Grow Host Community Plan

By Mordi Chukwunonso Esther host community needs assessment must show that the settlor had engaged with af fec ted host community to u n d e r s t a n d the issues and needs of such host community.

T

he New Petroleum Industry Bill (PIB) currently before the National Assembly has proposed that oil companies operating in some communities must develop a community development plan to ensure their economic growth.

The new bill obtained by the News Agency of Nigeria (NAN) revealed that the companies are expected to engage with the communities to understand their specific needs.

“The settlor (oil companies) shall develop a host community development plan and shall submit it to the regulatory body “The Authority”. It said.

It added that the settlor after the grant of any licence or lease issued in pursuant to the act must conduct a needs assessment in accordance with the act.

It noted that each host community needs assessment must form a social, environmental and economic perspective of the affected host community.

“It has to ascertain the effect that the proposed petroleum operations might have on the host community and provide strategy for addressing needs and effects identified,” it said.

The new bill further noted that each 42

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NLNG Donates Renal Centre worth N381 million to Rivers State.

” It has to indicate that host community was consulted with and considered the reasonable concerns of women, youths and community leaders.

“Engage with each affected host community in developing a strategy to address the needs and effects identified in the applicable host community needs assessment,” it added.

On content of host community plan, it said that it shall specify the community development initiatives required to respond to the findings and strategy identified in host community needs assessment.

According to the new PIB, the plan shall determine and specify projects to implement and provide a detailed timeline for the project.

“It will determine and prepare the budget of the host community development plan and set out the reasons and objectives of each project as supported by the host community needs assessment, ” it said It further said that the plan must conform to the Nigerian content requirements provided in the Nigerian Oil and Gas Content Development Act and provide for ongoing review and reporting to the host community.

T

he Nigeria Liquefied Natural Gas Limited, NLNG, has donated a Renal Centre worth N381million to the Rivers State University Teaching Hospital, to support the response to COVID-19 pandemic and to boost healthcare delivery in the state.

NLNG’s Managing Director, Engr.

Tony Attah, At the signing ceremony for the Memorandum of Agreement with the management of the hospital,said NLNG was committed to supporting healthcare delivery in Rivers State, in line with its vision of “helping to build a better Nigeria”.

Attah said the Company was also investing in the Bonny Community Health Insurance Programme, to help improve access to quality healthcare services, and the Bonny Malaria Eradication Programme, to cut down malaria-related mortality among women and children under five and to make Bonny Island, Nigeria’s first malaria-free zone.

SOCIAL INVESTMENT Represented by General Manager, External Relations and Sustainable Development, Mrs Eyono FatayiWilliams, Attah said these interventions signified NLNG’s resolve to stand with the people of Rivers State and to reciprocate their goodwill and support to the Company over the years.

The donation is coming closely after the Company’s COVID-19 donations in medical equipment

and supplies worth over N476 million to five states, namely Lagos, Bayelsa, Akwa Ibom, Edo and Adamawa states as part of its contribution to the N11.4 billion oil and gas industry collaborative initiative, spearheaded by NNPC to fight COVID-19 pandemic.

Bonny Island of medical supplies and materials worth about N1billion.

The company’s other interventions in Rivers State include training of medical personnel on Bonny Island, the base of its operations, donation of food items as palliatives to its host communities and the provision of a 24-bed treatment centre at the Bonny Zonal Hospital for residents of Bonny community.

Earlier in the year, NLNG made donations to the Rivers State G overnm ent ; B onny L o c al Government and residents of

INFRASTRUCTURE

NNPC seeks National Assembly’s Support for Approvals of Budgets Appropriated for Critical Gas Infrastructure Projects

By Ikenna Omeje collaborate with the National Assembly to ensure speedy passage of the long awaited Petroleum Industry Bill (PIB).

T

he Nigerian National Petroleum Corporation (NNPC) has said it would continue to engage and seek the support of the National Assembly for approvals of budgets appropriated for critical gas infrastructure projects in the country.

A press release by Group General Manager, Group Public Affairs Division of the Corporation, Dr. Kennie Obateru, said the NNPC’s Group Managing Director, Mallam Mele Kyari made the remarks at a meeting with the Chairman House Committee on Gas Resources, Nicholas Mutu and his team who visited him in his office.

Kyari stated at the meeting that the national oil company would also

“The GMD, who was represented by the Chief O p erating Of ficer, Gas and Power, Mr. Yusuf Usman, said NNPC will continue to engage and seek further support for approvals of budgets appropriated for critical gas infrastructure projects as well as the speedy passage of the Petroleum Industry Bill (PIB) 2020 which is currently before the National Assembly.

“He reiterated NNPC’s commitment to the provision of alternative fuels for Nigerians through the deployment of Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) skids at filling stations for automobiles.

“This will give Nigerians more opportunity to enjoy cheaper fuels for their vehicles as well as reduce carbon emission footprints in line

with the global environmental aspirations,” the release stated.

Responding, Mutu “…applauded the Mallam Mele Kyari-led Management team of the Nigerian National Petroleum Corporation (NNPC) for its achievements in the areas of gas infrastructure development, gas supply obligations for the domestic market and the NLNG Train 7 Project.”

The release quoted him as saying: “It is a step in the right direction.

Indeed, gas resources have come to take the pride of place in our national development agenda, and given the quantum of proven gas reserves in the country, we can rightly declare that Nigeria is more of a gas country.

“We acknowledge the efforts of the management of NNPC in developing the gas sector, and we commend them on the existing projects. The Ajaokuta-KadunaKano (AKK) gas pipeline that was recently launched by Mr. President is an exhibition of total commitment by the NNPC.”

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INFRASTRUCTURE

Nigeria Needs $15bn Annual Spend to Close Infrastructural Deficit - MD Sifax

By Ikenna Omeje

Adekunle Oyinloye

F

or Nigeria to close its infrastructural deficits, the Managing Director of Sifax Shipping Company, Adekunle Oyinloye, has said that the country needs $15 billion annual spend over the next five to six years.

He stated this recently in a paper on ‘Infrastructure Financing: Bridging the Gap via the Capital Market’ he presented at the 24th stockbrokers’ conference organized by the Chartered Institute of Stockbrokers in Lagos, tagged: ”Navigating Through the Storms: Re-energizing the Economy through the Capital Market”.

Oyinloye noted that because about 80 per cent of infrastructure development in the country is financed by the government, and given the current political situation -- decline in government’s revenues --- occasioned by the crash of crude oil prices, put contraints on the government’s ability to finance infrastructure.

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He said:“Just in 2020, foreign portfolio investment declined by 19.92 per cent between June and September 2020, indicating foreign investors’ lack of appetite on current instruments in the market.

The lack of diverse investment instruments has led to such capital outflows.

“At present, the value of Nigeria’s infrastructure is about 35 per cent of GDP, very low in comparison with 70 per cent for economies of the same size, and public infrastructure expenditure as a percentage of GDP is just 3.5 per cent.”

Oyinloye stressed the need for alternative funding for infrastructure development in the country saying: “With the estimate that the country needs to fund about 18 per cent of its GDP on infrastructural development, it is important to start to look for alternative sources of financing to bridge the deficit.”

According to him, “Given the capital intensive nature of infrastructure finance and the large size of such financing instruments, the current capital market is unable to accommodate infrastructure financing instruments, “The market capitalization of the Nigerian stock market as a percentage of Gross Domestic Products (GDP) is just 9.8 per cent, the lowest when compared to its African peers. This denotes a relatively shallow and illiquid market.

Oyinloye suggested that financing for infrastructure should be sourced from local project sponsors, International project sponsors, local banks, international banks, local institutional investors, i n te r n a t i o n a l i n s t i t u t i o n a l investors and multilateral finance organizations.

INFRASTRUCTURE

How PPPs Attracted $8.5b into Nigeria’s Economy in 10 Years – ICRC boss

T

he Management of the Infrastructure Concession Regulatory Commission (ICRC), has said that it has shored up the Nigeria’s economy with over 8.5 billion dollars generated from Public Private Partnerships (PPPs) in the last 10 years.

According to the News Agency of Nigeria (NAN), the Director-General of ICRC, Chidi Izuwah disclosed this in Abuja when he received a delegation of the National Hajj Commission of Nigeria (NAHCON) led by its Chairman, Kunle Hassan.

Izuwah, while reeling out the commission’s achievements, said that as at Sept. 30, the ICRC had issued 88 Outline Business Case compliance certificates and 39 Full Business Case compliance certificates.

He said that 152 PPP projects were at different stages of pre-contract regulation, while 73 PPP projects were also at different stages of postcontract regulation.

He said that the commission was working in collaboration with the Office of the Head of Civil Service of the Federation to establish PPP units in Ministries, Departments and Agencies (MDAs).

He said that this was to facilitate wellthought-out infrastructure service

delivery through well prepared and viable PPP projects.

would rather sell all his cattle or his business to go to the pilgrimage.

The said disclosed that the feat had brought about 60 MDAs inaugurating their PPP units.

“Nigerians have been going to Hajj for a long time and it is difficult or impossible to ask people to not go for the pilgrimage.

On addressing PPP opportunities in NAHCON, Izuwah said it could upgrade and renovate pilgrims’ camps and make them comfortable and conducive.

He said the commission could also use Information and Communication Technology (ICT) to enhance the operations of Hajj and Umra operators and pilgrims.

Earlier, Hassan said the visit was to seek ICRC’s partnership to enhance private sector involvement in its operations and activities.

According to him, the Hajj commission presently does not run on government funding but on charges generated internally.

He said that Hajj, being one of the fifth pillars of Islam, had Nigeria as the country with the fifth largest contingent in the world with 95,000 pilgrims yearly.

“For an average conscious Muslim going on Hajj is a dream whether he is rich or poor. Sometimes because of religious sentiments, someone

“The position of the government is ours too that government has no business using government funds to sponsor people to go on pilgrimage,’’ he said.

Hassan, however, said that to make going to Hajj affordable, the commission started the Hajj savings scheme which afforded intending pilgrims the opportunity save ahead of the pilgrimage.

“We have started the scheme with Jaiz Bank. We have also gotten the board’s approval for digital transformation plan to run all our operations digitally,” he said.

NAHCON chairman said that the commission was in the process of establishing a training institute for tourism for pilgrim operators so pilgrims could get value for their money.

ICRC was established in 2008 to regulate PPP activities in Nigeria and to address physical infrastructure deficit which hampers economic development.

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MARITIME

CITN Tasks NIMASA on Tax Revenue

Maritime can Support Nigeria’s Economic Diversification Drive – Jamoh Daniel Terungwa

T

he Chartered Institute of Taxation of Nigeria (CITN) has emphasised the role of the Nigerian Maritime Administration and Safety Agency (NIMASA) in fast-tracking tax revenue as a prime source of government finance.

President and Chairman of Council, CITN, Dame Gladys Simplice in a statement in Lagos recently, said that the institute would help in the country’s economic development drive.

She made this known during the 22nd Annual Tax Conference organised by the institute.

Simplice commended NIMASA’s commitment to the development of the maritime industry through p ro m o t i o n o f t h e Fe d e r a l Government’s Ease of Doing Business initiative and expansion of infrastructure as keys to national progress.

“NIMASA is a regulatory agency saddled with the responsibility of regulating shipping business in the maritime industry, creating enabling environment to simplify taxes on businesses to attract Foreign Direct Investments and revenue generation,” she said.

The CITN president also spoke on the strategic economic importance of marine tourism and water transportation and called for deliberate measures to develop them.

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“As a regulatory body, it is your duty to regulate this tourism aspect of Nigeria, encourage indigenous shipping and financially empower Nigerians to develop their cargo businesses, which automatically enable our local and foreign exports through ships.

“NIMASA can bring water tourism into focus in Nigeria and this is my charge to NIMASA,” she said.

Simplice said NIMASA had been instrumental in the fight against piracy and other maritime crimes, saying that the partnership with the Nigerian Navy would go a long way in safeguarding the country’s maritime environment.

She called for equal treatment of operators in the industry and tax concessions to shipping companies, especially on account of the adverse effect of COVID-19.

Dignitaries that graced the occasion included Mr Babajide Sanwo-Olu, Malam Nasir El-Rufai and Alhaji Inuwa Yahaya, the Governors of Lagos, Kaduna and Gombe States respectively.

The conference centred on the broader role of taxation as an essential tool for economic growth and competitiveness with submissions on policy, legal and administrative prescriptions for various stakeholders.

T

he Director-General of Nigerian Maritime Administration and Safety Agency (NIMASA), Bashir Jamoh, has said that the maritime industry is the best option for the diversification of the nation’s economy.

Jamoh stated this in a paper titled “Maritime Security and National Development in Nigeria: The Role of NIMASA”, which he presented to Course 29 participants of the National Defence College, Abuja.

He said that with many countries proposing a ban on the use of fossil fuels and the world transitioning from oil, it is imperative to exploit alternative sources of funding.

NIMASA Boss stated that maritime had enormous potential to drive sustainable development in Nigeria, with huge investment opportunities in shipbuilding and repairs, offshore/ floating spare parts sales and maintenance, freshwater bunkering and supply, dredging, and inland waterways transportation.

According to him, about 75 percent of all Gulf of Guinea-bound cargo are destined for Nigeria and if properly harnessed, maritime could give the country 30 times more than the revenue from oil.

MARITIME “Oil contributes about 70 percent of government revenue and nearly 90 percent of foreign exchange earnings in Nigeria. But Nigeria is trying to move away from the near total dependence on oil” Jamoh said.

On security and infrastructure development, he highlighted the Integrated National Security a n d Wate r w ay s Prote c tio n Infrastructure also called the Deep Blue Project and the various fleet

expansion and shipbuilding plans as measures to ensure a conducive environment for investment in the maritime industry.

“We are tackling the security issues in our waters, and we know that the international community is concerned, and the stakeholders are mindful of our efforts. Those who do business in our maritime environment want to make sure that when they arrive Nigeria safely, they

are also able to leave Nigeria safely.”

In his remarks, Commandant, National Defence College, Rear Admiral Mackson Kadir, called for a positive reorientation towards maritime. Kadir commended the NIMASA Director-General for his efforts towards the growth of the maritime industry and intensification of the collaborative spirit among relevant organisations in the sector.

New Apapa Terminal to Offload 5,000 Containers, Ease Congestion Daniel Terungwa

T

here appears a sigh of relief for importers from the traffic gridlock experienced on the Apapa and Tin Can Island Port roads, as Jakys Nigeria Limited berthed 32,000 Square meters throughout the terminal at Ijegun area of Satellite Town Lagos.

Chief Executive of Jakys Nigeria Limited, Henry Muogho said the terminal is 90% completed and has commenced test running about eight months ago. It has gradually started taking away the pressure from the ever-busy Lagos port roads and bridges aslo.

With about 32,0 0 0 square meters, the terminal is expected to accommodate over 5,000 containers, and about 25 trucks loading at the same time, thereby easing the Apapa and TinCan Island Port congestion.

He explained that the terminal is accessed by barges from any of the port terminals, while trucks come in through the roads to evacuate the containers around Satellite Town, Lagos.

The Managing Director and

Muogho said the terminal was leased to Mediterranean Shipping

Company (MSC Shipping) and its logistics arm; Medlog with a lease agreement of 5 years.

According to him, the terminal is a throughput terminal dedicated for only MSC containers, adding that no third party containers are allowed to come into the terminal.

“Here is going to be like a throughput jetty, no third party containers are allowed to come in here, as you can see, it is only MSC containers that we have here, this means there is also a call-up system for trucks to come in here.

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MARITIME “We have an MoU with the community that made us build the roads, this was part of the lease agreement with MSC and Medlog.

Trucks that are coming here would not be parking on the road, therefore, the nuisance value that we have at other ports and terminals, I don’t want to import them here,” he said.

“On the other hand, when other companies do the same thing, the gridlock would be totally eliminated, bridges saved, money spent by Government for road maintenance would reduce, and the suffering Nigerians are subjected to on a daily basis would be eliminated completely,” he said.

The Managing Director further stated that in order to avoid congestion and confusion, there is need for a call-up system for trucks coming into the terminals.

While speaking on the access road to the jetty, Sir Henry opened up on the MOU signed with residents of the area.

“We have been carrying out partial operations for eight months now and there have been no complaints from the community. It is not a container depot as such, but a throughput terminal” he said. T he Jakys Chief Executive Officer explained that the condition for liaising with Medlog and MSC Shipping was that first, they must have a truck park, and they already have it for all their trucks coming to pick cargoes at the terminal.

According to him “You cannot see any truck parked on the roads. And in the case of a truck breaking down, two hours were given to them to move the truck.

He described the project as a triple plan withholding bays and truck parks being within the same vicinity, noting also that there is a call-up system from the truck park around Trade Fair Complex along Badagry expressway to the bonded warehouse.

“There is also a call-up system between the jetty and the bonded warehouse. When the terminal becomes fully operational, the traffic volume on our roads would be reduced by not less than 50 per cent.

“While using the bridges as holding bay would no longer be happening as there would be no need for that any longer.

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He said “We sand-filled about 10 alternative roads for the community.

We gave the community money to complete an alternative bridge in the event that trucks are coming in, the community members can have an alternative route to use.

“The community roads were completely waterlogged which we sand filled. While the state government also came in to certify that what we did is a value-added to the community, by ensuring that the drainage we constructed for the community was in compliance with the state requirements”

By now we ought to have gotten it done, but for some unforeseen challenges.

“We have been on the ground now for the past eighteen months What we have on ground now, I think we are about 90 percent completed,” he said.

NOSDRA to Deploy Oil-Spill Response Units to Nigerian Airports

“We also did another drainage that runs to several millions of naira, to evacuate all the waters to the lagoon.

As of today, we have successfully tackled the problem of flooding in the whole area of where we operate in Liverpool Estate. We are also creating a vibrant economy.”

Also speaking, the contractor in charge of the project, Messers Jasper Structure Integrated Services Limited said construction works have been ongoing for the past eighteen months.

Chief Executive Officer of the company, Mr Jasper Akhigbe said the project was 90% completed and that Nigerian Ports Authority officials have been coming around to inspect.

“We gave the terminal owners a timeline of three months to ensure completion, but when we came in, the scope of work expanded.

F

ollowing the recent fire outbreak at OVH Energy’s tank farm at Apapa, the National Oil Spill Detection and Response Agency has said four airports in Nigeria have been penciled down for deployment of oil spill response units.

Director-General, NOSDRA, Musa Idris while briefing the press on the fire incident, listed the four airports to include those in Lagos, Port Harcourt, Kaduna, and Calabar.

MARITIME

According to him, the Minister of State for Environment, Sharon Ikeazor, had approached the aviation ministry on the need to have the oil spill response facilities at airports.

NIMASA, NSC Others Condemn Attack on NPA

He noted that following the intervention of Ikeazor, the Minister of Aviation, Hadi Sirika, ordered the Federal Airports Authority of Nigeria to create spaces for oil spill equipment and materials at the selected airports.

The NOSDRA boss stated that based on this and other concerns, the agency had been developing local capacity that would assist in combating oil spill and fire outbreaks in locations where oil commodities exist.

Idris said, “One of the key things that we have been doing here in this agency is to ensure that we have local capacity.

“Indeed, we are 70 percent into an agreement with a local company that has capacity to assist both in terms of oil spills and fire incidents.

“We have the approval and endorsement of the Minister of State for Environment, who made visits to the Federal Ministry of Aviation to seek places in four major airports in Nigeria including Lagos, Port Harcourt, Kaduna, and Calabar.”

He explained that although oil had not been found in Kaduna State, the airport in Kaduna was picked because there exists a refinery in the state and the airport could be used to move oil commodities.

“Having consulted with the Minister of Aviation, he (Sirika) has given directive for FAAN to allocate spaces for us in those airports for aircraft hangar, as well as warehouses to store and stockpile oil response equipment and materials,” Idris stated.

H

eads of maritime agencies have expressed shock at the level of destruction that took place at the corporate headquarters of the Nigerian Ports Authority (NPA) in Lagos when hoodlums hijacked a nationwide peaceful protest by youths last month.

They voiced their concerns during a solidarity visit to the site of the incident.

Speaking on behalf of his colleagues, the Managing Director of the National Inland Waterways Authority (NIWA), Dr. George Moghalu, condemned the assault, saying the level of destruction is monumental and constitutes a huge loss to the maritime community as a whole.

Moghalu said: “Seeing the level of destruction here first hand, we feel very sad about the turn of events.

We are all in solidarity with the NPA management. This is a great loss to the entire country and we need to educate ourselves more that violence is not the best way to go about things.”

He said it was a surprise to them that NPA was singled out for attack despite its documented corporate social responsibility(CSR) and community relations initiatives, many of which were tailored to youth development.

In a similar vein, Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr.

Bashir Jamoh, regretted that the maritime industry was made to face this challenge despite still battling with the effects of the COVID-19 pandemic.

He said port facilities were critical national assets that should be collectively protected.

“Port facilities are invaluable economic assets and they are critical to national development. It behoves us all as citizens to be custodians of this monumental infrastructure built for our collective good, ”he added.

While commending Managing Director of NPA, Ms. Hadiza BallaUsman, for providing leadership at this trying time for the agency, Jamoh said the Nigerian economy would have suffered considerably if the destruction had led to suspension of port operations.

He said: “This is a sad event, especially, for our industry that is still battling with the COVID-19 pandemic. Port operations are central to the activities of all the maritime agencies. We are just lucky that this did not stop shipping operations because this would have negatively impacted or crippled the Nigerian economy.”

In her response, Bala-Usman called the attack an assault on the maritime industry, saying the level of destruction is incomprehensible.

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POWER

Renewables to Account for 90%of Increase in Global Total Power Capacity in 2020 – IEA

… To accelerate in 2021

By Ikenna Omeje

“Renewable power is defying the difficulties caused by the pandemic, showing robust growth while other fuels struggle.”

“The resilience and positive prospects of the sector are clearly reflected by continued strong appetite from investors – and the future looks even brighter with new capacity additions on course to set fresh records this year and next.”

T

he International Energ y Agency (IEA) has said that renewables will account for almost 90 percent of the increase in total global power capacity in 2020 and will accelerate in 2021 to their fastest growth in the last six years, a release by the Agency has said.

According to the global energy watchdog in its Renewables 2020 report, renewable power is growing robustly around the world this year, contrasting with the sharp declines triggered by the Covid-19 crisis in many other parts of the energy sector such as oil, gas and coal.

The IEA in the report, which was released recently, noted that the current growth is being driven by China and the United States.

The release stated that the report forecasts that new additions of renewable power capacity worldwide will increase to a record level of almost 200 gigawatts this year. This rise, which represents almost 90 percent of the total expansion in overall power capacity globally, is led by wind, hydropower

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and solar PV. It said that wind and solar additions are set to jump by 30 percent in both the United States and China as developers rush to take advantage of expiring incentives.

The release stated further that based on the report, India and the European Union will be the driving forces behind a record expansion of global renewable capacity additions of nearly 10 percent next year – the fastest growth since 2015.

It explained that this is the result of the commissioning of delayed projects where construction and supply chains were disrupted by the pandemic, and growth in markets where the pre-Covid project pipeline was robust. India is expected to be the largest contributor to the renewables upswing in 2021, with the country’s annual additions doubling from 2020.

Commenting on the report, the release quoted IEA’s Executive Director, Fatih Birol as saying:

Giving more analysis on the repor t, the release stated: “Over the first 10 months of 2020, China, India and the European Union have driven auc tioned renewable power capacity worldwide 15 percent higher than in the same period last year – a new record that shows expectations of strong demand for renewables over the medium and long term. At the same time, shares of publicly listed renewable equipment manufacturers and project developers have been outperforming most major stock market indices and the overall energy sector. By October, shares of solar companies worldwide had more than doubled in value from December 2019.

“However, policy makers still need to take steps to support the strong momentum behind renewables. In the IEA report’s main forecast, the expiry of incentives in key markets and the resulting uncertainties lead to a small decline in renewables capacity additions in 2022. But if countries address these policy uncertainties in time, the report estimates that global solar PV and wind additions could each increase by a further 25 percent in 2022.

POWER

“Critical factors influencing the pace of deployment will be policy decisions in key markets like China, and effective support for rooftop solar PV, which has been impacted by the crisis as households and businesses reprioritised investments. Under favourable policy conditions, solar PV annual additions could reach a record level of 150 gigawatts (GW) by 2022 – an increase of almost 40% in just three years.”

Birol added that “Renewables are resilient to the Covid crisis but not to policy uncertainties. Governments can tackle these issues to help bring about a sustainable recovery and accelerate clean energy transitions.

In the United States, for instance, if the proposed clean electricity policies of the next US administration are implemented, they could lead to a much more rapid deployment of solar PV and wind, contributing to a faster decarbonisation of the power sector.”

The electricity generated by renewable technologies will increase by 7 percent globally in 2020, underpinned by the record new capacity additions, the report estimates. This growth comes despite a 5 percent annual drop in global energy demand, the largest since the Second World War. However, renewables outside the electricity sector are suffering from the impacts of the Covid crisis. The release noted that biofuels used in transport are set to experience their first annual decline in two decades, driven by the wider plunge in transport fuel demand this year as well as lower fossil fuel prices reducing the economic attractiveness of biofuels. Demand for bioenergy in industry is also falling as a result of the wider drop in economic activity. The net result of these declines and the growth of renewable power is an expected overall increase of 1 percent in global renewable energy demand in 2020.

REA Signs Performance Based Grant Agreement with Two Mini-Grid Developers

By Ikenna Omeje

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he Managing Direc tor/CEO of Rural Electrification Agency (REA), Ahmad Salihijo Ahmad, has signed Performance Based Grant (PBG) agreements under the Nigeria Electrification Project (NEP) solar hybrid mini grid component, with two developers.

The grant agreement which was signed at REA’s Corporate headquarters in Abuja, was signed with Nayo Tropical Technology Limited and Darway Coast Nigeria Limited .

According to REA, the PBG aims to close the viability gap for mini grids developed on a rolling basis.

Agreements for a total of four communities were signed.

Under the agreements, Nayo Tropical Technology is expected to connect ~800 households, MSMEs and Public facilities in Petti, Kilankwa I & II communities,

Kwali Local Government Area of the Federal Capital Territory; while Darway Coast Nigeria Limited will connect 1000 households, MSMEs and Public facilities in Obite Community at Etche Local Government Area, Rivers State.

T h e M D / C EO w h i l e congratulating the developers appealed to them to deliver the project using the best possible technology standard within the stipulated timeline agreed.

Head, Project Management Unit of the NEP, Anita Otubu who coordinated the signing agreement also congratulated the developers and inform that, applications are still being accepted from mini grid developers to assist in accelerating the development of mini grid technology solutions to close the energy gap in Nigeria.

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SUSTAINABILITY

LADOL’S MD Urges African Private Sector to Embrace UN 17 SDGs

By Margaret Nongo-Okojokwu Amy explained that women consistently lead on sustainability and the evidence clearly shows that companies with women in leadership positions significantly outperform those that are 100% male. So, achieving SDG Goal 5, female equality, and empowerment, is necessary to achieving all the other goals. For the continent of Africa, given the huge market opportunities, need to create new local companies and grow old ones – there is an urgent need to ensure that women are given the support they need to take leadership positions in the private and public sector.

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he Managing Director of Lagos Deep Offshore Logistic Base, LADOL Dr. Amy Jadesimi has urged African private sector the United Nations 17 Sustainable Development Goals, SDGs as a template for their new economy business models.

She stated this as one of the distinguished speakers at the Women Working for Change (WFC) virtual Summit held recently, November 24th, 2020.

“African private sector is largely unencumbered by legacy nonsus tainable b usin e sse s an d investments. This means that these African companies are set to flourish if they build businesses with new economy sustainable plans and targets. There is now no doubt that sustainability equals profitability, as proven in the Business and Sustainable Development Commission’s (BSDC) publication “Better Business Better World”, launched in 2016. The BSDC’s report identified USD 12 trillion in market opportunities for companies that focused on sustainable business models.

“The demographics of Africa offer a substantial opportunity for global

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wealth creation. However, we should recognise that the playing field is still tipped against local private companies. Organisations and investors that want to grow with and benefit from job and wealth creation in Africa, while ensuring that Africa industrialises sustainably, should ensure that they put their support and money in the hands of sustainable African companies. Most of the current investments / support coming into Africa now is still being channeled into large monopolies and companies that maintain the status quo,” she said.

Dr. Jadesimi spoke on the importance of removing bottlenecks and hurdles deliberately put in the place of indigenous private companies, whose growth was essential for continental prosperity, “roughly 80% of the jobs in Africa will be created

by SME’s”.

“It’s as if instead of funding mobile phone companies thirty years ago – investors instead funded land line companies in the hope that they would develop mobile technology.

A step change is needed, and as it happens it will result in a win, win for everyone – as prosperity in Africa will drive global peace and wealth creation,” She said.

The Managing Director spoke alongside, Stephanie von Friedeburg (Acting Chief Executive Officer, IFC), Myriam Brigui (Head of International Network Department, Proparco) and Manon Karamoko (Chief Executive Officer, Unilever Côte d’Ivoire) on a panel addressing the topic “Coming Out on Top of the Crisis: Towards a More Sustainable Growth Model”.

The panel discussed the following: - By 2100, average temperatures in Africa will rise by 1°C to 4°C, while episodes of flooding and drought are set to become more commonplace.

Over the same period, Africa’s population is expected to nearly triple in size. With companies looking to reinvent themselves and find new business models, isn’t it time to build back better?

- Can Africa’s private sector make a substantial shift towards sustainable growth by focusing on reducing greenhouse gas emissions, building resilience to climate change, preserving biodiversity, and developing the circular economy?

LADOL is building the world’s first Sustainable Industrial Special Economic Zone (SSEZ). The organisation is using the UN’s Sustainable Development Goals (SDGs) to build a unique circular ecosystem, servicing a range of industries.

SUSTAINABILITY

Sustainability, a Fundamental Element of The Future Labor Market recent report published by LinkedIn. Brazil is another country that has started to make its way in the field of sustainability. Forecasts indicate that the leading Latin economy, where the growth rate of sustainable jobs is 6.4%[1], is at the start of a new form of production that will lead the country towards an increasingly green economy.

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i Group, the fifth European company to offer global human resources solutions, has carried out a study which confirms the growth that the value of sustainable development has experienced in recent years, which has become a fundamental aspect of many economies, many industries and of our daily life.

The concept of sustainability goes far beyond protecting the environment , reducing CO2 emissions and recycling to trying to stop the pace of climate change.

Sustainability is a value that has been introduced in recent years in companies, which have started to promote sustainability in their activities, by introducing so-called ESG policies. These policies, which encompass environmental, social and governance criteria; They mainly impacted the financial departments, but also in the HR areas which pay them more and more attention. In this sense, from a human resources perspective, and more generally in the labor market and the workplace, sustainability means much more.

In the first place, it is a question of promoting the well-being of employees and the reconciliation between professional and private life, this implies investing in the development of their skills and therefore in the improvement of their employability; It involves the implementation of innovation and digital transformation in companies

and goes through the promotion of worker engagement, the fight against illegal employment and the reduction of the disparity of opportunities.

While all three ESG criteria can be said to be important, protecting the environment itself has already had an impact on employment in the world’s largest markets, creating new jobs related to this mission.

This increased commitment to the environment has created “green jobs”, that is, green jobs.

It should be noted that the employment rate of this type of professional is growing around the world. And, according to the analysis by Gi Group, Germany has 2.8 million green employees growing in CAGR of 1.59%, while Italy has around 3.1 million with CAGR in increase of 3, 4%. “Obviously there are clear differences between some regions and others, and we see that in the countries where we operate,” they comment from Gi Group. In particular, the data suggests that countries with a lower number of green jobs may still have a high growth rate for these types of jobs. This is the case of the United Kingdom, which has only 185,000 green jobs, but with a growth rate of 11.64%, and of Spain, with 531,000 jobs and a growth rate of 5.85. %. In fact, Madrid occupies the 20th place in the world ranking which measures the concentration of professionals in “green jobs”, being the only Spanish city in this ranking, according to a

As mentioned previously, the Gi Group has recorded an increase in demand for green jobs in the markets where it is present; but without being able to adopt a global approach, because local differences are very relevant.

Mechatronics and industrial mechanics. Demand for these two professionals is particularly high in markets and countries where efforts to obtain more sustainable industrial fabrics are particularly important.

For example, Germany, in particular for its cutting edge automotive sector, and Italy, which enjoys a relevant position in the global manufacturing industry. A new generation of installers, for example new air conditioning systems or new clean energy storage networks that reduce CO2 emissions. In the case of this type of employees, the demand for their hiring increases in practically all countries, especially in urban areas like Paris, Madrid and Barcelona. Specialized workers, such as electricians and masons who are experts in new technologies and ecological materials. They are very popular in countries where real estate has always played a crucial role, such as Italy (12.5% ​​of GDP against 10% of average European GDP – OECD data), Brazil, China, Poland and elsewhere. many other emerging, growing markets around the world are familiarizing themselves with luxury buildings which today must comply not only with luxury standards themselves, but also other environmental criteria.

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SUSTAINABILITY Another example is that of information technolog y: our lives are increasingly dependent on technological infrastructure, especially af ter the current pandemic. Therefore, an increasing demand for technicians of all kinds is expected: experts in major operating systems, computer hardware technicians, product specialists, as well as other support roles such as cable repairers. The demand for this type of professionals is already increasing around the world, with the number of workers who need to be connected to perform their jobs.

In addition, the current economy and the social crisis awakened

by COVID-19 have forced the entire world population to rapidly change their habits and customs, accelerating the trend towards teleworking. Many experts are convinced that these changes that we have adopted, initially out of necessity, will become part of our daily life and that this will have consequences even for sustainable jobs or green jobs. The data shows a sharp increase in e-commerce: its growth rate for 2020 is expected to rise from 4.4% to 18.4%, resulting in an expansion in demand for transport solutions suitable for newcomers. environmental standards and, consequently, an increased demand for new green skills.

“The overall summary presented through this study is clearly positive, as it represents new career opportunities for workers and applicants in different countries.

However, being part of this category of employees is not an easy task for all these unaccustomed people. new sustainable technologies. At Gi Group, given our role, we work every day to strengthen employability and we consider it essential to focus on reducing this gap, reducing the skills gap through training and upgrading. all this to understand the needs of the market and the company. This is even more important today, given the unprecedented situation we are experiencing. And that means making sustainability our top priority ”- says Stefano Novaretto, Country Director of Groupe Gi in Spain.

The analysis was carried out on the basis of data recorded on the activities of Groupe Gi in the world as well as data from LinkedIn Talent Insight.

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Christmas: Street Waste Company to Feed 1,000 Vulnerable People In Obalende

By Jerome Onoja

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waste management company, Street Waste Company Limited (SWCL), is making plans to feed 1,000 vulnerable people in Obalende area of Lagos, Nigeria as a way to put smiles on their faces in celebration of the coming Yuletide.

The project tagged, “Operation Feed 1,000 People in Obalende” is targeted at supporting low income earners in Obalende by providing them with food items like beans, rice, noodles and live chicken.

The co-founders of the company, Olusegun Idowu and Omoh Alokwe disclosed this in a chat with Majorwaves while calling on corporate organisations, especially those that operate in environmental sphere within and outside of the state, to support them and take advantage of this project to reach out to the people as part of their Corporate Social Responsibility (CSR).

Street Waste Company is a form of social interface with core focus on waste disposal to protect marine lives. It also consults with organisations on waste management.

It is noteworthy that Lagos State, the nation’s commercial capital generates about 2,250 tons of plastic wastes daily.

That comes to a total of 821, 250 tons of waste annually!

As part of its CSR, the company annually organizes what it calls, “Lagos Waste Recycling Programme” , which is endeared towards advocacy with people – trying to influence a change in their attitude – as it relates to waste disposal and recycling.

The company which could not hold the annual Lagos Waste Recycling

Programme this year due to the outbreak of Covid-19 pandemic, recently embarked on a community outreach programme in Obalende. Idowu said the aim of the outreach programme is not just about waste management, but also to eradicate poverty in line with the goal 1 of the United Nations Sustainable Development Goals (SDGs).

He noted that the aim of the community outreach was to empower people, especially women and young people, by creating job opportunities for them in the area of waste management.

According to Alokwe, in addition to creating job opportunities for women and young people, the outreach programme in Obalende is also about creating awareness on the economic benefits of proper waste disposal.

She informed that the company reached out to about 400 underprivileged people including women, elderly people and youths in its recent outreach to Obalende.

The company which sees its waste recycling as a social venture spends more on its social activities than it even makes in return from waste recycling, has partnered with Lagos Waste Management Agency (LAWMA) and Food and Beverage Alliance (FOBA).

Street Waste Company Limited, registered under the Company and Allied Matters Act, is an environmental and waste management company on a mission to create a sustainable environment through consultations, environmental assessments and audits; as well as waste recycling, advocacy, partnerships and collaboration.

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